An evaluation of the relationship between neighbourhood quality and property value in Minna, Niger State, Nigeria

Abstract

The primary data collected for this research included neighbourhood quality attributes and annual rental values of properties in the different neighbourhoods in Minna. Methods of data analysis included, Analysis of Variance (ANOVA) to determine the neighbourhood quality index at all neighbourhoods, correlation analysis to determine the relationship between average neighbourhood quality and average property value at all neighbourhoods, and regression analysis to compare neighbourhood quality and property value at all sampled locations. Assessment of property values by correlation analysis revealed that property values measured as average rent (avre) differ across all six neighbourhoods sampled. This is because the coefficient of determination (R2) observed was 76%. Regression analysis also provided evidence of a statistically significant relationship between property values and neighbourhood quality, measured across all sampled locations with an R2 value of 0. 070. These results meant that there is statistically significant relationship between neighbourhood qualityand property value in Minna. It was recommended that there is need for an urgent upgrade of the facilities in our neighbourhoods to become big agents of value creation for property investors as it is in most developing and developed economies.