Valuation of Environmental, Social and Governance (ESG) Factors as Key Factors in Real Estate Investment Decision: The Valuers' Perspective

Environmental, social and governance (ESG) factors appears to be key factors in real estate investment decision and gaining acceptance in the real estate sector in Nigeria. Their impact on real estate valuation and research in Nigeria is one that has been brought to lime light and has called for study. There is need to assess the level of awareness and understanding among Valuers regarding the importance of ESG factors in real estate investment decision making, identify the valuation techniques and methodologies used, identify the challenges faced by Valuers in the integrating ESG factors into their valuation practices and to proffer solutions on how to overcome them. The research is more of mixed-method. In its design it incorporates both quantitative and qualitative methods to obtain a comprehensive understanding of the topic. The method of analysis was descriptive and inferential. It was done using simple percentages, means rank with the use of SPSS, statistical software. The findings from the result collected from 435 Estate Surveyors and Valuers (ESVs) in Nigeria shows some classes of properties where ESG factors can be applied as well as some factors that influence it. Also identified was the impact of ESG factors on long term sustainability and how they align with sustainability goals. This research indicates the dire need to incorporate environmental, social and governance in valuation and real estate investment decision. The ability to shed light on the valuation of environmental, social and governance as key factors in real estate investment decision is what this paper showcases.