By Ayo Onikoyi

Considering the prevalent and reoccurring negative impacts of flooding that has ravaged many states in Nigeria as a result of torrential rain, a built environment and real estate expert has revealed how flooding affects investment decisions in residential properties.

According to Dr Abiodun Oyetunji, a scholar in Lancaster University, UK, “The real estate industry is a significant sector to any modern economy, however flooding has become a major concern for property investors, leading to huge losses and damage to properties”.

In one of his published articles, in Buildings journal, MDPI Switzerland where an excerpt was obtained by this newspaper medium, where he investigated how flooding affects property investment decisions with a focus on Lagos metropolis, Nigeria, this study established that flooding could shape investment behaviour.

Dr Oyetunji noted that flooding has led to devastating damage in many states in Nigeria this is accasioned by rapid urbanization, the increasing unplanned number of metropolis devoid of appropriate design for infrastructural facilities and climate change.

The study found that that availability of infrastructural suppy, neighbourhood crime rate and property location are significant factors that could motivate decisions regarding property investments, however, behavioural factors such as risk perceptions and attitude towards flooding could play a crucial role in investment decisions, he noted.

The study revealed that private investors and real estate agents have different perceptions of flood risk, with private investors prioritizing economic factors and real estate agents prioritizing neighborhood factors.

Dr Oyetunji emphasized the need for property investors to consider flooding and its likelihood when making investment decisions.

He also highlighted the importance of government intervention in providing adequate infrastructure and flood mitigative measures to reduce the impact of flooding within the environment.

The study’s findings have significant implications for policy makers, property developers, and investors in Nigeria’s real estate sector.

As Nigeria continues to experience flooding in various parts of the country, Oyetunji’s research provides valuable insights into the factors that influence investment decisions in flood-risk areas.

“The study’s recommendations can help stakeholders make informed decisions and mitigate the impact of flooding on properties,” Oyetunji said.

Oyetunji’s research contributes to the growing body of knowledge on the impact of flooding on real estate investment decisions.

By understanding the factors that influence investment decisions in flood-risk areas, stakeholders can take proactive measures to reduce the risks associated with flooding.

“Flooding affects more properties than any other environmental hazard and hinders sustainable development,” Oyetunji said.

Dr Oyetunji’s study is a timely contribution to the ongoing conversation on flooding and its impact on Nigeria’s real estate sector.

“The criteria for defining flood-risk areas could vary by country, but factors such as the frequency and magnitude of flooding, land elevation, proximity to water bodies, the presence of floodplains, and the level of development in an area could contribute to the flood risk of an area,” Oyetunji noted.

The study’s findings have significant implications for Nigeria’s real estate sector, as the country continues to experience rapid urbanization and growth.

Dr Oyetunji’s research provides valuable insights into the factors that influence investment decisions in flood-risk areas, hence, the research recommendation becomes an invaluable for stakeholders in this built environment sector.