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The effect of environmental pollution on real estate development. Environmental pollution is one of the problem affecting real estate development that needs quick attention. Due to many industries located in Nigeria there is much discharge of gaseous effluent and waste disposal. Also there is the increase of automobile which generates fumes; smoke from generating plant which is on the increase polluting the environment. This research use Warri, Delta state as a case study. The research examined the effect of environmental pollution on real estate development. It also look at the extent to which it affected the entire property and other people living around the area and suggested possible solutions.



Title page                                                              i

Approval page                                                        ii

Dedication                                                             iii

Acknowledgement                                                  iv

Abstract                                                                v

Table of contents                                                    vi


1.0 Introduction                                                     1

1.1 Background of the study                                    1

1.2 Statement of the problem                                         4

1.3 Aim and Objectives                                            4

1.4 Scope of the study                                            5

1.5 Research questions                                            6

1.6 Delineation of study areas                                         6

1.7 Limitation of the study                                       7

1.8  Significance of the study                                   7

1.9 Definition of terms                                            8



2.0 Literature Review                                              10

  • Real Estate And Environmental Pollution 10

2.1.1 Physical Pollution                                            10

2.1.2 Nonphysical Pollutions                                     11

  • List Of Pollution 12

2.3 Example Of Special Situations                             12

2.3.1 Underground Storage Tanks (USTS)                  15 Change In Commercial Industrial Property Value 16 Effect On Residential Property Value               17

2.3.2 Asbestos And Other Insulating Materials            18

2.3.3 Lead Paint And Products                                         19

2.3.4 Radon                                                           20

2.3.5 Nuclear Facilities                                             21

2.3.6 Air Pollution                                                   24

2.3.7 Noise Pollution                                                25

2.3.8 Toxic Substances In The Home                         25

2.3.9 Surface Water And Ground Water

Quality Requirements                                       27

2.3.10 Waste Disposal Facilities And Practices.            29

2.3.11 Illegal Drug Manufacture-Effect

On Property Value                                            30

2.4 Testing                                                            32


3.0 Research Methodology                                       33

3.1 Introduction                                                     33

3.2 Research Design                                               33

3.3 Sources Of Data                                                      34

3.5 Area Of Study                                                   34

3.6 Population Of The Study                                     34

3.8 Sample Size Of The Study                                  35

3.9 Sampling Techniques                                                35


4.1 Data Presentation And Analysis                           36

4.1 Introduction                                                     36

4.2 Data Presentation                                              36

4.3 Data Analysis                                                    37

4.3.1 Research Questions                                        37


5.0 Discussion Of Findings, Conclusion And

Recommendation                                             44

5.1 Discussion Of Findings                                       44

5.2 Recommendations                                             48

5.3 Limitation Of The Study                                     50

5.6 Conclusion                                                        50

References                                                             53

Appendix                                                               56

Questionnaire                                                         57






Warri is one of the well known oil producing city in Delta State Nigeria. Warri is one of the prominent towns in the Niger Delta endowed with great natural resources.

Oil is the primary base of Nigeria’s economy and is also the cause of major  environmental and social problems in the Niger Delta region of Nigeria. Over the years, oil exploration, production, and refinement in Nigeria has resulted in various environmental and ecological problems that range from oil spills, gas flares, habitat destruction, air and water pollution, and land degradation. Also, a major cause of oil pollution in that same region is also to a great extent, from the activities of illegal oil bunkering and illegal refineries operated indigenes and some highly placed individuals in government. The chemical properties of spilled oil often affect the productiveness of soil and pollute water bodies, thereby causing irreparable damage to agricultural lands as well as aquatic bodies. Gas flaring is a significant environmental and economic problem in Nigeria emits approximately 70 million metric tons of carbon dioxide annually (US EIA1999). This adversely affects the socio-economic actives of local communities, which is primarily based on fishing and farming (Egunjobi, 1993).  It is estimated that in one region alone in the Niger Delta, flaring is statistically likely to cause 49 premature deaths, 5000 respiratory illnesses among children and some 120,000 asthma attacks and 8 additional causes of cancer each year ( Environmental Rights Action and the Climate Justice Programme). Another major issue ravaging Nigeria  is water pollution.

According to Anukam (1997), the main source of water pollution in Nigeria has to do with forestry activities. Deforestation and improper soil tillage practices increase the concentration of soil particles that make their way into water bodies and in turn increases their sediment loads. The discharge of industrial waste materials into bodies of water is another major source of pollution in Nigeria.

Discharges from industries such as petroleum, mining, iron and steel, pharmaceuticals, and textiles among others have increased the contents of sulfates and nitrates in water bodies and has altered properties such as color and odor (Adelegan 2004). A large percentage of Nigerians derive most of their domestic and drinking water from ponds, stream, and shallow wells. Hence, water pollution is a major health concern that places the health of about 40 million people at risk of diseases such as cholera, dynestery, diarrhea, and typhoid (Anukam 1997, Adelegan 2004, Orubu 2006).

Domestic and Industrial Waste has also constituted a major source of environmental pollution in Nigeria.

The improper disposal and ineffective management of municipal waste creates  major environmental and aesthetic problems in most of Nigeria’s urban areas. Due to overpopulation and the creation of slums, most municipal areas currently generate more waste than they can manage (Ogbonna and Ekweozor 2002).


Irrespective of the numerous environmental laws enacted to protect the environment, environmental degradation has continued unabated. Oils pillage and gas flaring activities are still commonplace in Nigeria, especially in the oil-rich Niger Delta. Gas flaring has also continued unabated irrespective of the Nigerian government’s directive to end flaring by 2010 (Kalu, 2009). Thousands of barrels of oil have been split into the environment through our oil pipelines and tanks in the country. Enforcement of environmental regulations is still poor as industries continue to discharge untreated waste water into the environment. Heaps of refuse are always a constant sight to behold in Nigerian streets and markets.


The aim of this research work is to examine the effect of environmental pollution on real estate development in Delta state.

However the objectives are as follows:

  1. To identify and examine the impact of environmental pollution on real estate development in Warri.
  2. To make suggestions/recommendations on how to address/reduce pollution of the environment.
  • To identify the issues of environmental pollution in real estate development.



Inadequate finding has restricted the carrying out of a complete and comprehensive research on the effect of Environmental Pollution on Real Estate in all the oil producing state in Nigeria. Also there is the problem of distance coverage to visit all the communities within the study are for the propose of data collection. Based on this, Warri in Delta state will be the sitting of the study and all information gathered shall be generalized in the context of research report.



This research is carried out to find answers/suggestions to the following questions.

  1. To what extent has the Nigerian government program towards reduction of the effect of pollution on real estate been actualized?
  2. How has environmental pollution affected the value of real estate and as such discourage investors from real estate development?
  • What are the solutions to the challenges of environmental pollution on real estate development?



Warri is one of the well known oil producing city in Delta State of Nigeria. Warri is one of the prominent towns in the Niger Delta endowed with great natural resources. Although it is not the capital tertiary of Delta state (Center of Activity). It is well populated and as well as such, has much commercial activity are carried out within the area. This research work shall be centered on Warri as the study area since it is used as the case study of this research.


This research work was limited by reluctance of residence to give all information required for the purpose of this research work. Also availability of finance requirement to visit the entire community of Warri limits this work to an extent. Much time were not devoted for this research work. With this limitation, it can not be fully stated with confidence that a complete coverage was given to the project as demanded.


The following are the significance of this study:

The outcome of this research will educate the general public on the issues and the adverse effect of environmental pollution in real estate development.

The findings from this study is going to necessitate measures that will lead to demand for improved implementation of environmental pollution control laws in Nigeria.

This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently. If applied, it will go to an extent to provide new explanation to the topic.


  1. EFFECT: is a change that results when some thing is done or happens; an event, condition, or state of affairs that is produced by a cause.
  2. POLLUTION: Pollution is the introduction of contaminants into the natural environment that cause adverse change.

Pollution occurs in different forms, air, water, soil, radioactive, noise, heat, thermal and light.

Iii.   ENVIROMENT: The sum total of all surroundings of a living organism, including natural forces and other living things, which provide conditions for development and growth as well as of danger and damage.

  1. ENVIROMENTAL POLLUTION: Is defined as the release of toxic harmful substances into the environment by their natural force or man and his resources. There are four major types of environmental pollution this include;
  2. Air pollution
  3. Land pollution
  • Water pollution
  1. Noise pollution
  2. REAL ESTATE: Is property comprised of land and the buildings on it as well as the natural resource of the land including uncultivated flora and fauna, farmed crops and livestock, water and minerals. It can be grouped into three broad categories based on its use residential, commercial and industrial.
  3. DEVELOPMENT: Is the process in which some one or something grows or changes and becomes more advanced.

VII, DELINEATION: Is the act of representing something or describing it.


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