Critical review of hedonic pricing model application in property price appraisal : a case of Nigeria

Abstract

The hedonic pricing model (HPM) technique has been widely adopted for property price appraisal by scholars and professionals in different real estate markets around the world. Despite its popularity in this research domain, the trend of the application of HPM in Nigeria, being the largest economy in Africa, is unknown and has not been documented. This study, therefore, aims to critically review the extant literature of the HPM property price appraisal related articles published in Nigeria. Papers published in this research area were retrieved from online databases and search engines. The authors’ contributions, authors’ affiliations, the focused study areas and the annual publication trend of the articles were reviewed. The first application of HPM in Nigeria was recorded in 1986. Thereafter, there have been fluctuations in the number of annual publications. However, there have been a considerable number of articles published since 2010. The authors have largely focused on the Lagos metropolis property market as a study area. It was also found that most of the authors were university scholars and on the other side, real estate professionals have not contributed significantly to this research topic. In order to achieve a sustainable real estate practice in Nigeria, the gap between theory and practice should be bridged.