Abstract

Emerging trends and the development of higher education institutions such as universities and colleges show an expansion of the student population in Cameroon.

This scenario tends to have an impact on the student housing market growth, due to excessive demand from the students but also play an impact on residential real estate development.

The main objective of the study was to examine the effect of Higher Education Institutions on residential property development in Buea. Specifically, the study sought to identify the types of residential properties found around the University of Buea, to assess the relationship between residential property development and the existence of the University of Buea and to examine the challenges of constructing residential real estate around the University of Buea.

The study employed a descriptive research design to sample 150 respondents using a structure questionnaire by means of purposively and simple random sampling techniques.

The study results revealed that major types of real estate residential housing in close proximity to the University of Buea includes Studious without toilet, Apartments and Guest houses.

The study revealed that the establishment of the University of Buea was a major called for real estate development in the area. It was showed that the establishment of the university of Buea that encourage most residential real estate actors to construct their houses and trigger the high demand of real estate residential houses value.

However, it was also revealed that the presence of the university affects real estate development as it was faced with challenges such as high taxes, difficulty to access to finance, high cost of raw materials, frequent renovation cost, water related issues, accessibility, electricity problems, congestion, pollution, and theft.

It was suggested that the government should provide adequate electricity supply and clean drinking water in these areas so as to boast the development of the municipality.

CHAPTER ONE

GENERAL INTRODUCTION

1.0. Introduction

This chapter contains the background to the study, the problem statement, the research questions, and objectives of the study, research hypotheses, and operational definitions of terms, scope of the study and the significance of the study.

1.1. Background of the study

In recent years there has been a profound change in the environment in which higher institutions operate. Over the past few decades, Higher Education Institutions have had to cope with the dual problems posed by rapid expansion and a transformation in the processes of funding.

Growth has meant that the number of students has increased rapidly and that they have had to be accommodated in an enlarged and diversifying tertiary system, (Macintyre, 2003).

Higher education comprises all post-secondary education, training and research guidance at education institutions such as universities that are authorized as institutions of higher education by the state authorities. It includes all the activities a given country deems to be higher education – not only those that take place within ordinary universities and graduate schools, but shorter term education and training courses (polytechnics, junior colleges, and various forms of technical specialty schools)that are 2-3 years in length, and even correspondence courses that make use of information technology and are targeted at a broad population of students.(Ramon-Yusuf, 2003).(Babalola and Okediran, 1997) views university education as that which facilitates creation of knowledge and innovation for the overall socio-economic empowerment of the individual and community development.

Higher education institutions may generate different sort of impacts in a neighbourhood. The presence of a university in a derelict area may initiate the transformation of the entire neighbourhood through the action of development, regenerating houses in order to attract students, staff, and those providing support services to live nearby (Perry and Wiewel, 2005).

More also, universities can also function completely apart from the surrounding neighbourhoods, ignoring social problems (Anamaria and Melchior, 2007).

Higher education institutions are viewed as a magnet in the metropolitan areas that attracts people and economic activity towards it (O’Flaherty, 2005).

Anamaria and Melchior, (2007), use two concepts to analyse the impact produced by the presence of Higher Education Institution in an area: To include magnets and enclave. The first concept used to describe the impacts of large land owners such as the educational institutions is the ‘Magnet’. In Urban terms, magnet represents a concept or metaphor which describes a territory in the metropolitan area which attract people and economic and development towards it.

Higher Education institution can be qualified as magnet since they have power of attracting many students, faculties and staff as well as business and institutional activities to specified town in a region. Higher education institutions, when acting as a magnet, besides attracting uses that promote urban and economic growth, attracts activities regarded as damaging by particular groups in the society (Anamaria and Melchior, 2007).

The second concept used to describe the impact of large land owners such as the Universities is the “enclave”. A new enclave represents a self-contained place or region of the city, with uses or morphology different from the one of the surrounding neighbourhood (Anamaria and Melchior, 2007).

According to (Perry and Wiewel, 2005), a higher education institution has traditionally seen itself as an enclave, “removed enough from the immediacy and demands of modern life to produce the knowledge and information with which to better understand the society”. Depending on the externality, the role of higher institutions as magnet most times overcomes their features as enclaves.

Therefore, the concepts of magnets and enclaves represent an important methodological tool in the analysis of the impacts and externalities by the Higher education institutions on their neighbourhoods (Anamaria and Melchior, 2007).

Higher institutions  primarily acquire land and structures that support their core mission or immediate growth demands, it is however not uncommon for surrounding communities to criticize universities for their unresponsive development policies or lack of a plan to mitigate negative spill over effects (Sungu-Erylimaz ,2009).

For neighbourhood residents, some of the major concerns relate to quality of life issues, such as conversion of houses and other buildings to student occupancy; upward pressure on rents; adaptation of shops and facilities to student markets; and increase in traffic, noise, and parking problems (Harasta, 2008).

The residential real estate sector of Cameroon in general and Buea Municipality in particular is comparatively and more progressive than the other real estate sector. It claims around 80% share of this sector (Cameroon report, 2015).

The residential real estate sector in Cameroon as witnessed tremendous growth through development of SIC, low cost houses in different parts  of the country, notably Douala, Yaoundé, Limbe as well as projection for further construction in  the other towns.

The major growth drivers of the real estate sector are rapid developments of the cities in Cameroon and rapid urbanisation process which support such developments. This leads to a rise in real estate properties, especially houses. The municipality of Buea has seen the growth in housing through the establishment of Higher education Institution which has attracted population into the town of Buea.

In recent time, the Cameroon government had shown a strong commitment to the growth of the higher education sector by establishing more institutions especially universities and other professional institutions and the liberalization of its ownership.

While this is the focus of the government, little or no attention is given to the provision of accommodation in the varsities to meet the rising student population which comes about as a result of these higher education institutions.

As a result of this, majority of students, staff and administrators from theses higher Education institution take solace in other residential properties for alternative accommodation. This demand has resulted in the establishment niche market around these Higher Education Institutions.

For instance, close to 80% of students populations of Higher education institution are living in privately rented accommodation.

The result of this is a sharp increase in rent since the available housing accommodation even in the rental market is not enough to meet the demand. In the past, houses were completed by landlords or property investors, but today, Students struggle to make payment even when such accommodation are yet to be completed. The landlords and investors exploit this situation and rents are arbitrary fixed and outrageous.

1.2. Problem statement

The creation of the University of Buea in 1992/93 and other institution that follows their creation, has led to an influx of not only students but staff, administrators and other people who came for either business purposes or investment. Since shelter is considered as one of the most basic human needs that one cannot do without.

Therefore those who have been pull or push into Buea for various purposes such as business, education or for investment find solace in various forms of residential properties within the Buea municipality base on proximity to their area of interest.

Higher education institution development has the possibility to effect on residential property development in an area, they creates competition in the housing market and put pressure on limited housing supply in an area. This scenario affects residential property development in the area.

The establishment of the University of Buea and other Institution that followed it creation Buea has diverted real estate’s activities which were agriculturally base incline to residential and commercial real estate investment. Therefore, this research is aimed at assessing the effect of Higher Education Institutions on in residential property development.

With the specific objectives; to identify the types of residential properties found around the University of Buea, to assess the relationship between residential property development and the existence of the University of Buea, to examine the challenges of constructing residential real estate around the University of Buea.

1.3. Research questions

Based on the problems identified, the study seeks to answer the following research questions

1. What are the types residential properties are found along the University of Buea?
2. What is the relationship between residential property development and the existence of the University of Buea?
3. What are the challenges of constructing residential properties around the University of Buea?

1.4. Research objectives

The main objective of the study was to examine the effect of Higher Education Institutions on residential property development in Buea

1. To identify the types of residential properties found around the University of Buea.
2. To assess the relationship between residential property development and the existence of the University of Buea.
3. To examine the challenges of constructing residential real estate around the University of Buea.

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