Arts and Social Sciences Journal

Analysis Of The Relationships Of Infrastructural Facilities In The Determination Of Rental Values Of Residential Properties In Akure, Nigeria

Abstract

Julius Ajilowo Bayode Olujimi

Housing represents the most basic of human need and it has a profound impact on the health, welfare, and productivity of individuals. For housing to produce these impacts, it must be adequately provided with functional infrastructure. In Nigerian urban centres, these basic infrastructure have suffered major neglect over a long period of time in the hands of government and its different agencies that are expected to provide and maintain the infrastructure. Therefore, property developers are responsible for the provision of the infrastructure in their properties which have increased the development cost of the properties. For the property developers to continue to invest in property development, the rental values of the property must continue to be attractive to allow developers recoup back the investment on such property. This study therefore investigated into the available infrastructural facilities in residential properties in Akure, Nigeria and analysed their influence in the determination of the rental values of the properties. Akure was divided into four residential zones and one hundred and ninety tenants were randomly selected for interview. Eleven infrastructural facilities were identified as peculiar to residential properties in Akure. The study employed multiple regression model to determine the influence of the infrastructural facilities in the rental values of the property while the step-wise analysis revealed that wall-fence and installed burglary proof are significant determinants of rental values of residential properties in Akure. However, Pearson’s Product Moment Correlation Coefficient matrix was used to verify the significant level of the independent variables. The study concluded that although other infrastructural facilities are also necessary but residential property developers should essentially ensure the provision of these two infrastructural facilities in order to attract higher rental values.