The effect of location on the rental value of residential properties in the Ikeja Local Government Area of Lagos State was investigated in this study.
The majority of the data was gathered from secondary sources such as papers, such as published literature, official records, and media accounts. Questionnaires were distributed to registered Estate Surveyors and Valuers, Estate Agents, landlords, and residents of the study region to acquire primary data.
In order to accomplish this, attempts were made to assess the function of location and neighborhood elements in the determination of house prices in the conceptual background to this study.
BACKGROUND OF THE STUDY
Residential real estate is useful for both consumption and investment (Sratton, 2008). It is purchased for owner occupation as a consumption good.
In addition, the investment (property) may be made to obtain the highest possible return through an outright sale or lease. If this is the case, the rental property’s pricing becomes extremely essential to both the landlord and the tenants.
As a result, many people consider investing in this type of property to be a significant source of wealth. The physical qualities of the property, such as the number of bedrooms, age, size, and numerous amenities and services, have all been noted to assist landlords in determining the rental price for residential properties.
External considerations such as population, income, traffic congestion, proximity to work, and public transportation availability are all taken into account.
Because of the stability of returns and the profitability of the market, investors have recently redirected their investment towards real estate construction (Kauko, 2003).
In addition, to fulfill demand, there has been an expansion and increase in the quality of residential properties given by investors due to the severe competition in the residential property market.
Residential property values in Nigeria are influenced by a variety of factors. Location, demand and supply, accessibility, institutional, and economic factors are just a few of them. Nonetheless, there is still a brief drop in the market, resulting in rent and capital value increases (Eriki & Udegbunam, 2008).
Despite these benefits, real estate practitioners, financiers, and investors in residential properties suffer a scarcity of data on the impact of location on property values.
STATEMENT OF PROBLEM
Despite obstacles such as low funding, poor infrastructure, high building material costs, a lack of government policies, and unethical standards, real estate has contributed to the growth and development of the Nigerian economy.
The goal of this study is to examine and evaluate the relative importance of location and neighborhood features in determining the value of residential properties in Ikeja, Lagos State.
Another issue is determining a feasible methodology for residential dwelling unit valuation in the Nigerian property market.
Using primary and secondary sources, this study will also determine the property qualities that have a substantial impact on property market values.
In addition, this research will see if geography is a significant factor.
OBJECTIVES OF THE STUDY
The purpose of this research is to investigate and assess the impact of location on the rental value of residential properties in Ikeja, Lagos State.
The following are the study’s goals:
1. To determine the impact of various location characteristics on residential properties in the research region.
2. Investigate the factors that influence the rental value of residential properties in the research region.
3. Investigate the association between the study area’s location and residential property values.
4. Make recommendations on how real estate investors and policymakers might maximize the benefits of locational advantages.
In order to offer a scientific context for this investigation, the following research questions were asked:
1. What elements have an impact on residential properties in Ikeja?
2 What impact does geography have in determining the rent of residential units in Ikeja?
3. What is the relationship between the market value of a home and its location?
4. What impact do these determinants and policymakers have on an investor’s decision?
SIGNIFICANCE OF THE STUDY
This research will add to the corpus of knowledge that is now available in print and broadcast media. It will also serve as a resource for students, scholars, and other researchers interested in the impact of location on residential property rental values.
It will also assist individuals, professionals, investors, communities, change agents, media professionals, and the general public in recognizing residential property qualities and how they effect property values in Nigeria.
This research will also assist researchers, academics, and investors in identifying numerous residential property qualities that have a reasonably substantial impact on market values (prices) and, to some extent, influence the sales and purchase decisions of sellers and purchasers in Nigeria.
SCOPE OF THE STUDY
The study focuses on residential properties in Lagos State’s Ikeja L.G.A. A considerable number of residential dwelling units can be found in Ikeja. The study focused on Ikeja as a locale to see how it affected residential property rental values. A site is defined by a number of factors, including accessibility, facilities, environmental aesthetics, security, and business potential.
According to preliminary research, the study region contains a variety of residential properties. Terrace building, Maisonette, Bungalow, Block of flats, and Tenement are examples.
The study will concentrate on residential properties in the Ikeja intra-city due to the size, terrain, and complexity of Lagos State. Ikeja is the most populous part of Ikeja Local Government, which is one of four zones within the broader Lagos metropolitan area.
DEFINITION OF TERMS
PROPERTY: anything, tangible or intangible, over which a legal relationship exists between a person and the State, enforcing a possessory interest or legal title (Famuyiwa 2012)
RESIDENTIAL PROPERTY: The various types of housing that give refuge. It is also the structure that is primarily used for residential purposes.
RENTAL VALUE: This is the projected monetary return on an investment over the course of a year (Babawale 2013)
PROPERTY MARKET: This is a means for exchanging bundles and clusters of rights and interests in real estate (land and landed properties).
LOCATION: This is an economic feature of real estate that is made up of immobility, constant change, and a specific distribution factor. Wikipedia (Wikipedia, 2015).
VALUE: The value or worth of future rewards in the present. It’s also about the money.