Residential Property Use Conversion and Rental Value Trends in Osogbo, Nigeria

Abstract

The volatility in property rental market and the increasing trend of property use conversions in Nigerian cities have become a typical issue of national discuss, as every available plots or building fronting Major Streets in our cities are either in the process of conversion or have been converted. This paper assesses property use conversions with the view to determining it causes and influence on rental trends or performances in Osogbo, the capital of Osun state. Ten years data on rental values spanning from 2010 to 2019 were collected and used for the study. Data on rental values and property usage were sourced from Estate Surveyors and Valuers (ESV) while information on use conversions were obtained from tenants and the State Ministry of Lands and Physical Planning (MLPP). In order to achieve the aim of the study, 236 questionnaires were administered on the respondents, only 200 questionnaires representing 84.75% was correctly filled and returned for analysis. Data collected were analyzed using both descriptive and inferential statistical techniques. The results of findings revealed a statistically significant influence of land/property use conversion factors on rental performances in the state. It further shows that economic and demographic factors are the two prime reasons for property use conversion from residential to commercial uses, after use conversions command higher annual average rental values. The implications are among others, the creation of an unenviable property rental regime in the city and depletion of the available residential housing stock. It is on these findings that the study recommend the effective and efficient land use conversion control and management mechanism as well as incentive for residential property developers in the city of Osogbo.