THE IMPACT OF NEIGHBOURHOOD CHARACTERISTICS ON RENTAL VALUES OF RESIDENTIAL PROPERTIES IN MINNA, NIGERIA

Abstract

Impact of neighbourhood characteristics on rental values of residential properties has over the decade been a major topic of discussion in the global housing market. The situation emanated as a result of the multi –dimensional bundle of services and a bundle of contradictions and paradoxes that housing is known for. The study examined the impact of neighbourhood characteristics on rental values of residential properties in Minna, Nigeria. This study assess the adequacy of neighbourhood characteristics in the study area; examine the current rental values of different classes of residential properties in the study area, and examine the level of impact of neighbourhood characteristics on rental values of residential properties. The methodology adopted was the use of a structured questionnaire with closed ended questions to source data from 621 randomly selected stakeholders across the three categories of residential properties. The data were analysed using both descriptive (frequency table, and a 5 point likert scale) and inferential (multiple regression) statistical analysis. Results from the analysis revealed that rental values of residential properties in F-lay -out are higher than that of the residential properties in Tunga low cost, and the rent in Bosso neighbourhood is relatively higher than that of Tunga low cost respectively, the result indicate ₦50,000- ₦100,000, ₦100,000-₦150,000PA and ₦150,000-₦200,000PA for one bedreoom in Bosso, Tunga and F-layout respectively, ₦150,000-₦200,000, ₦200,000-₦250,000 and above ₦250,000PA for two bedroom in Bosso, Tunga low cost and F-lay out. For three bedroom, ₦200,000-₦250,000PA, ₦20,000-₦250,000PA and above ₦250,000PA is recorded for Bosso, Tunga low cost and F-layout respectively, this is in relation to the variation in the quality of neighbourhood characteristics in these areas respectively. In order not to have a wide disparity of rental values that emerges among similar categories of residential properties within the same market, The study therefore recommended that the government should undertake an aggressive infrastructural facilities development, particularly in the high density areas and to also improve the number and quality of the existing amenities in the low and medium density areas.