Conference of the International Journal of Arts & Sciences,

CD-ROM. ISSN: 1943-6114 :: 09(01):29–40 (2016)

RESIDENTIAL HOUSING RENTAL VALUES AND INFRASTRUCTURAL

DEVELOPMENT IN OSOGBO, NIGERIA

Ikpeme Anthony Ankeli, Daniel Ibrahim Dabara, Makanjuola Dare Gambo,

and Kabir Omotoso Lawal

Federal Polytechnic, Nigeria

Oladejo Michael Agidi

Umaru Waziri Federal Polytechnic

Housing goes beyond mere shelter to include the facilities and other things in the environment that
makes living comfortable for man, hence Olujimi opine that for housing to produce these impacts, it
must be adequately provided with functional infrastructure. The concern of most Nigerian cities today,
is the fluctuating housing rental and the complete neglect of basic infrastructure by government and its
agencies that are expected to provide these infrastructures and maintain the few available ones. This
study therefore examined the available infrastructural facilities in residential properties in Osogbo with
the aim of evaluating their impact on the rental values of residential properties in the study area.
Questionnaire survey was adopted for the study in order to obtain information from the respondents.
Osogbo Metropolis was divided into four residential zones. A total of 450 questionnaires were
administered on the respondents using systematic random sampling techniques, however only
380 questionnaire were correctly filled and returned for analysis, representing 95% response rate.
The collated data were further analyzed with the aid of both descriptive and inferential analytical
techniques. The study among other things revealed that, properties with better conditions in
terms of infrastructures and physical soundness command higher rental values. It recommends the
need for the provision of essential basic infrastructure by government and its agencies and schedule
sustainable maintenance programmes for the infrastructure facilities provided. The study therefore
concludes that developers should ensures that all basic infrastructural facilities that will attract higher
values to their property be provided, government should make implementable policies and established
housing quality standard and supervisory agency that will be responsible for monitoring of
housing standards.

Keywords: Residential housing, Infrastructural development, Rental values.

Introduction

Urban infrastructure, apart from being an indicator for measuring environmental quality, is a catalyst for
political, social and economic development as well as the back bone of any economy as all sectors need it
to effectively function. It is a physical framework of facilities through which goods and services are
provided to the public.


29
30 Residential Housing Rental Values and ...

This sector covers a wide range of services such as telecommunication, sewage disposal, roads,
energy, water supply, agricultural, medical, educational and other facilities, etc. Most of these services
have a direct impact on man’s life from his health, safety and wellbeing. From the societal point of view,
they form the bedrock of all socio- economic development in a country, and are a key indicator of a
nation’s developmental status as well as the wellbeing of her citizens (Dabara, Okorie, Ankeli, & Alabi,
2012, Patunola-Ajayi, 2013 and Bello 2013). The basic challenges facing most African cities today apart
from housing inadequacy and fluctuating property rentals are the problems of the provision and
management of the few available infrastructural facilities.
In Nigeria for instance, the influx of rural dwellers to the urban centers in search of ‘white collar’
jobs has resulted in the increasing urban growth thereby putting much pressure on the few available urban
infrastructural facilities with the resultant consequences of overuse and deterioration of these facilities.
Hence, the public outcry in recent time is the fluctuating property rental values due to shortage in the
supply of housing, inadequate infrastructural facilities and the complete neglect of the few available ones
by government and its agencies charged with the responsibility of infrastructure management and
maintenance.
Ankeli, Dabara, Oyeleke, Guyimu and Oladimeji (2015) opined that where infrastructures are
adequately provided and prudently managed, it often serves as a magnet to other productive and
profitable land uses which fast track development and in turn lead to increase property rental
values. Their finding however revealed that an improved infrastructural facility enhances the rental value
of residential properties. Regrettably, findings from previous studies have shown that reasonable
numbers of urban housing in most cities in Nigeria have no basic infrastructural facilities but property
rentals in these areas are on the increase (Onibokun, 1982, Agbola, 2005, Adeniji, 2007 and Olujimi,
2010). This, some school of thought have attributed to the slow response of housing supply to meet the
ever increasing demand from the teeming population due to the unprecedented rate of urbanization (see
Agbola and Adegoke 2010. Toyobo, Muili, Ige 2011).
Notable international organizations and researchers have expressed concern on the rate of the
unprecedented urbanization, population growth, inadequate infrastructure and the alarming nature of
urban housing deficit resulting in fluctuating property rentals in large cities of the developing nations.
Adeleye and Ogunshakin (2005) asserted that the highly recognised among the most crucial corollaries of
unplanned and dependant urbanisation is the urban housing crisis pervading the primary and large
regional secondary cities of the fast and medium developing categories of the third world nations (Lagos,
Rio de Janeiro, Sao Paolo, Mexico City, Cairo, New Delhi, Karachi etc.).
Housing goes beyond mere shelter to include the facilities and other things in the environment that
makes living comfortable for man; hence Olujimi (2010) opined that for housing to produce these
impacts, it must be adequately provided with functional infrastructure. The ever rising prices in the
Nigerian housing markets have attracted wide spread criticism and the attention of all classes of
Nigerians, as well as the interest of most state governments and its rent regulators. An attempt by
government at all levels to regulate rent and restore normalcy to the property rental market subsector has
resulted in the adoption of series of policy interventions over the past few years.
Despite the vital roles infrastructure plays in real property values enhancement, nation building and
development, the Nigerian government both at federal and state level have continued to pay lip service to
infrastructure provision and development. In an attempt to determine the influence or the relationship
between residential housing rental values and infrastructural provision based on the perception that
improved infrastructural facilities enhances rental value of residential properties from which the capital
invested could be recouped, it thus becomes pertinent to provide answers to the following questions: (a)
what are the various types of residential properties in Osogbo? (b) What are the existing infrastructural
facilities in the residential properties in Osogbo? (c) Does the available infrastructural have any influence
on residential properties rental values in the study area? (d) what is the level of satisfaction of the
respondents in relation to the infrastructure provided and the rent paid for the residential property?
 Ikpeme Anthony Ankeli et al. 31

Justification for the Study

The factors that interplay or combine to enhance real Property rental values varies and are numerous,
some of these factors includes religious, cultural, socio-political, institutional, economic, environmental,
physical and such other factors which could enhance the values positively or negatively (Ankeli, 2007).
Olujimi, (2010) is of the view that those factors that negatively affect the value of real property injure
ownership motives and goals and as well damage the investor’s interest and discourage subsequent
investment.
As imperfect and inefficient as real property rental is in the Nigeria property market subsector, it
determination and adoption in property valuation exercise is an important task. However, for the purpose
of this study, residential property rent is the rent paid for the use of land and structure thereon only for the
purpose of inhabitation. Ankeli, Daniel, Guyimu, Oyeleke and Oladimeji (2015) affirmed that one of the
complex and challenging task facing both practitioners and intellectuals in the real estate profession in the
country today is the determination of accurate rental value of residential properties as it involves the
collection and analysis of comprehensive and accurate data on the property characteristics,
neighborhood characteristics, landlord and tenant characteristics and the market conditions which
most often are not readily available. This has made the recent dramatic rise in the Nigeria housing
property market prices to become an issue of national discuss as most states are now reawaking
their long abandoned Rent Control Edict/ Tenancy Laws.
However, it is obvious that there is but a scanty literature in this important area of study. The few
existing but relevant studies conducted in this area in the country are Olujimi, (2009), Ibrahim (2011)
Ankeli, Daniel, Guyimu, Oyeleke and Oladimeji (2015a) and Bello, Adeniji and Arowosegbe (2015)
each of these studies was conducted strictly covering small areas and ignoring the larger parts of the
property markets thereby creating a gap that needs to be filled. Other similar studies conducted have
focused on community-led infrastructure provision, infrastructure financing and urban development and
maintenance of urban infrastructure with no particular attention to residential property rentals and
infrastructural development, such studies are found in Ibem (2009), Ankeli et al (2015b) and Nwuba and
Salawu (2010). Hence, this study is justified by extending the coverage area to include the major areas of
a state capital city in southwestern Nigeria thereby enriching the existing stock of literature in this field.

Literature Review

Urban Infrastructure and Property Rental Values

Nubi (2002) also described infrastructure as the aggregate of all facilities that allow a city function
effectively. Infrastructure is a key element in the generation of economic growth and development and the
main driver of urban activities. It is the economic and social underpinnings of a society and the life wire
of the urban system (Nwuba and Salawu, 2010). Patunola (2013) see infrastructure as the sectors of
transport, water and sanitation, power, telecommunication and others which represents a large portfolio of
expenditure in all countries, ranging from a third to one-half of the public investment (equivalent is
roughly 3-6 percent of GDP). According to Bello, Adeniji, Arowosegbe, (2013) infrastructure covers a
wide range of economic and social facility crucial to creating an enabling environment for economic
growth and enhances quality of life which include housing, electricity, pipe-borne water, drainage, roads
sewage, health, education, telecommunication and institutional structures like police station, fire fighting
station, banks and post office. It is simply the engine that drives the development of any city.
Nwuba and Salawu (2010) however concluded that the state of urban infrastructure in Nigeria is
deplorable and inefficient largely due to lack of effective maintenance resulting from the current reactive,
remedial, task force approach to maintenance and inefficient infrastructure management system.
However, as a conduit of trade and investment that integrates and plays a transformative role in the
economic and social life of cities through the aggregation of all facilities that allows a city to grow and
32 Residential Housing Rental Values and ...

function effectively, adequate provision of infrastructure help in boosting the quality and status of
housing, changing resources into outputs, enhances business by removing barriers and bringing an
increase in the land and housing values, either sales or rentals (Harvey, 1993, Ajibola, Awodiran and
Salu-Kosoko 2013).
Most cities in the world including those in Nigeria are expanding at an alarming rate, this burgeoning
expansion of cities most often result in colossal environmental problems of mismatch between available
urban infrastructure and the level of demand. Logically, increase in human capital (labour) in any given
area leads to increase in production output which definitely will lead to economic growth. But an increase
in human capital without corresponding increase in the available infrastructure often results in the overuse
of facilities. Thus, the increase in economic growth will gives birth to the desire to invest in real estate as
a result of the expected rental or capital value appreciation. Researchers in the academia have traced the
causes of the rise in the market price to those factors that positively or negatively affect and injure
ownership motives and goals. Firstly real estate is seen as a bundle of unique characteristics and secondly
as factors that interplay to create it values. These factors do not only reflect on its location, but equally
affects other amenities such as the quality of neighbourhood and infrastructure services, economic and
institutional framework, as well as physical and environmental factors. This has led to the current rebirth
the long abandoned rent control edict and tenancy laws by most states in Nigeria.
Ankeli el tal (2015a) are of the opinion that the determination of residential property rental values is
a complex and a major challenging task facing both practitioners and intellectuals in the real estate
profession in Nigeria as the exercise involves the collection and analysis of comprehensive and
accurate data on the property characteristics, neighborhood characteristics, landlord and tenant
characteristics and the market conditions which are not readily available. Although their study
revealed that, properties with better conditions in terms of infrastructures and physical soundness
command higher rental values. The findings of their study may not form a good conclusive opinion as
their study focused more on housing condition in a small area of Osun state.
Olujimi (2009) in his study of the relationships of infrastructural facilities in the determination of
rental values of residential properties in Akure, Nigeria, concluded that the most significant property
rental determinants of the eleven infrastructural facilities identified are burglary proof and wall fence.
This may not be true opinion of respondents in other parts of western Nigeria. His analysis denotes a very
weak relationship between infrastructure and rent and the selection and adoption of the opinions of only
one hundred and ninety respondents to represent the opinions of entire Akure may not be good enough.
Harvey (1993) opined that the willingness of a residential property user to pay a high rent for a
property may to a large extent depend on his consideration for basic facilities such as accessibility, water
electricity and others. Infrastructure is a basic determinant of property value as the provision of good and
adequate infrastructure is central to property values and it leads to appreciation in property values and its
absence affects neigbourhood properties adversely (Hammer, Booth, and Love 2000, Johnson, Davies and
Shapiro 2005). All over the world, infrastructural development is adopted as the engine for economic and
technological enhancement. Hence, the provision, operation, management and maintenance of
infrastructures are strong employers of labour, a veritable property value determinant in the property
market and the broad base upon which other economic activities rely and thrive.
Ibrahim (2011) undertook a survey of infrastructural facilities and their effects on rental values of
residential properties in Ilorin metropolis. The study revealed that the presence of facilities generates high
preference, keen competition for properties and high rental values, while the absence of facilities results
in low patronage, disincentive to people, attraction of poor tenants and consequently low renal values.
The study also revealed that the discriminating rent charged by landlords in different locations within the
city among similar properties is as a result of uneven distribution of infrastructures within the city which
may eventually lead to gentrification. However, the focus of that research was Taiwo, Sabo-Oke and
Oloje areas which are a fraction of Ilorin thus it cannot be a perfect representation of Ilorin and the south
western Nigeria as a whole.
On the contrary, Udo and Egbenta (2007) examined the effects of domestic waste dumpsites on
rental values of residential properties in Enugu, Nigeria and affirmed that contrary to popular belief,
 Ikpeme Anthony Ankeli et al. 33

waste dumpsite which is part of infrastructure does not necessarily affect property values negatively. This
may not however be in all cases. Kee and Walt (1996) in an attempt to estimate rental value of residential
properties using Abductive Learning Networks (ALN), an artificial intelligence condemned the use of
regression analysis as adopted by Olujimi (2010) as a model for assessing property rental values due to
it parametric nature that requires the user to specify the functional form of the solution. This makes
the approach to be more of guess work and prone to inaccuracy. The Abductive Learning Networks
(ALN) may also not be an appropriate model in this case due to the technicalities involved.
The focus of this study is therefore to fill the gaps identified above by empirically evaluating the
influence of infrastructural development on rental values of residential property in the study areas.

Materials and Methods

Questionnaire survey was adopted for the study in order to obtain information from the respondents.
Osogbo Metropolis was divided into four residential zones- Oke onite zone, Odiolowo zone, Ogo-Oluwa
zone and Okefia zone. A total of 450 questionnaires were administered on the respondents using
systematic random sampling techniques, however only 80 of these questionnaires were correctly
filled and returned for analysis from Oke onite zones, 100 from Odiolowo zones while 120 and 80
were returned from Okefia and Ogo-oluwa zones respectively totaling 380 questionnaire that were
correctly filled and returned for analysis, representing 95% response rate. The collated data were further
analyzed with the aid of both descriptive and inferential analytical techniques.

Results and Discussion

Residential Property Types in the Study Area: To answer research question one, the types of
residential properties in the study are basically the face to face residential housing types, semi- detached
and detached residential properties. The “Face – to – Face” residential properties are usually design and
build in form of either bungalow or storey building with the rooms arranged on two opposite rolls (each
room facing each other), separated with a long passage. Facilities such as toilet, kitchen and bathroom are
shared in common by tenants. The Semi- detached flats are 2 flats combined on the same plot. It
could be in bungalow form or storey building. The detached flat is a single flat inclusively built on a site
and usually a bungalow building (Ankeli et al 2015). For the purpose of this study, all the flats used are
three bedroom bungalows.

Table 1. Types of Residential Properties in the Zones (% in parenthesis)

Types Zones Total

Okefia Okeonite Ogo-Oluwa Odi - Olowo
Face to Face 25 (20.8) 10 (12.5) 15 (18.8) 85 (85.0) 135 (35.5)
Semi detached 27 (22.5) 20 (25.0) 20 (25.0) 05 (05.0) 72 (19.0)
Detached 68 (56.7) 50 (62.5) 45 (56.3) 10 (10.0) 173 (45.5)
Total 120 (31.6) 80 (21.1) 80 (21.1) 100 (26.3) 380 (100)
Source: Author’s Field Survey, 2015

The table above shows that more of Face - to- Face types of residential properties (85%) exist in
Odi - Olowo zone, the total percentage of Face – to – Face in the other three zones added together is 50%
that is 50 numbers in all. Okefia, Okeonite and Ogo-oluwu zones have higher concentration of detached
residential buildings with few Face –to- Face building types. The reason for this could be that Odi –olowo
is one of the traditional core areas of the metropolis, with older building design and types.
34 Residential Housing Rental Values and ...

The Nature of Infrastructural Facilities in the Study Area

To answer research question two, infrastructures, which is synonymous with public utilities, community
facilities and services includes such variables as Water supply, Electricity supply, Gas supply, Sewerage,
Storm water drainage and Telephone service (public utilities) while the Social or community facilities
include Educational facilities, access road, Health facilities, Post Office and Postal agencies, shopping
areas, Recreational areas and facilities, Religious buildings, Cultural facilities like Libraries, Art galleries,
Museum and other environmental and neigbourhood variables whose provisions varies from area or zone
to zone and have general and specific effect on rental values of properties. Hence, It is a common believe
that the availability of these facilities and infrastructure in any environment improve the general
condition of properties, comfort of the inhabitants and enhances the overall worth of housing.
Findings from this study shows that in all the zones studied, public utilities and social or
community facilities and services exist. For electricity, all the 380 properties sampled in the four
zones are connected to the public mains. However there is no stable power supply in all the
zones. This is a common or general problem in the country.
Water supply in the zones is as shown in the table below. This is not based on the water supply from
the public mains alone but on the provision of functional water supply either through hand dug well or
boreholes. In all, only 48.7% of the residential properties sampled are provided with good water supply
sources.
Generally, the method of refuse collection and disposal in Osogbo is poor and fall below the
acceptable world practices. Most of the residential areas are not provided with any form of refuse
dump or collection points. Inhabitants drop their refuse and other domestic indiscriminately along the
major high ways thereby causing eye sore and health hazard. The table below shows that only 31.7%,
25%, 05% and 25% of the residential properties in Okefia, Oke onitea, Odi - Olowo and Ogo-Oluwa
zones. The effort of the Osun State Waste Management Board and Local Health Inspectors has not yet
achieved the desired result in this area.
It is expected that every residential property should be provided with access road that ensure safe and
free movement of goods and services. our findings shows that most of the residential properties in the
study area meet up with this expectation only for residential properties in Odi - Olowo zone where only
09% of the houses in the zone are accessible by motorable road, while the remaining 91% of the
residential property are not accessible by motorable road. For other facility as banks the worst hit
zones are Oke Onitea and Odi - Olowo zones with 0% presence while the other zones have 96% and
93.8% respectively. Table 2 below shows the various available infrastructures that enhances or devalue
the worth of properties in the zones under study in Osogbo

Table 2. Available basic Infrastructural Facilities in the Zones ('% in parenthesis)

Infrastructures Zones

Okefia Okeonite Odi - Olowo Ogo-Oluwa Total

Electricity 380 (100) 380 (100) 380 (100) 380 (100) 380 (100)

Water 60 (50) 70 (87.5) 25 (25.0) 30 (38.0) 185 (48.7)

Refuse disposal 38 (31.7) 20 (25.0) 05 (5.0) 20 (25.0) 83 (21.8)
Drainage system 110 (92) 60 (75.0) 10 (10.0) 50 (62.5) 230 (60.5)
Banks 115 (96) 0 (0.0) 0 (0.0) 75 (93.8) 190 (50.0)
Schools 115 (96) 75 (93.6) 20 (20) 75 (93.8) 285 (75.0)
Access road 90 (75) 70 (87.5) 09 (09) 65 (81.3) 234 (61.6)
Source: Author’s Field Survey, 2015
 Ikpeme Anthony Ankeli et al. 35

The Influence of Infrastructural Facilities on Rental Values in the Study Area

In line with research question three, existing studies have shown that the presence of infrastructure as
access road, proximity to rail, parks, market, historic designations, banks, schools, health facilities,
provision of wall-fence round the building and the installation of burglary proof in all the windows
nearness to worship centres and other environmental characteristics enhances rental values
(Thibodeau,1990, Ball, Lizieri and MacGregor, 199; Tay, Lau and Leung, 1999; McCluskey, Deddis,
Lamont, & Borst, 200; Jensen and Durham, 2003; Chau Wong, and Yiu, 2004, Anderson and West, 2005;
Provencher, Sarakinos, and Meyer, 2006, Dehring, Depken, and Ward. 2007; Lee, 2008, Ijla 2008
Olujimi and Bello, 2009, Iroham, Oloyede and Oluwunmi, 2011).
Leung, Chow and Han, (2008) in their study of Long-Term and Short-Term Determinants of
Property Prices in Hong Kong affirmed that the impact of inflation and real construction cost could be a
major reason for raising property price. While Ankeli et al (2015a) asserted that unprecedented
urbanization is a major factor for rental raise in less developed countries of the world. The table below
shows the major infrastructures that influence rental values in the study area. Roads with mean score of
7.5 and 6.4 ranked 1st in Ogo – Oluwa and 0ke Onitea, water ranked 1st at Okefia and Odi – Olowo zones.
Electricity ranked second in all the zones and the presence of banks ranked 6th in all the zones. The
findings of these work shows that the infrastructures that influences rental growth in each of the zones
varies.

Table 3. Identification of Infrastructural Facilities that Influences Annual Rentals in the Study Area

Locations/Zones
Variables Okefia Okeonitea Odi – Olowo Ogo-Oluwa
Mean Rank Mean Rank Mean Rank Mean Rank
rd st th
Road (2100) 5.5 3 (2450) 6.4 1 (1520) 4.0 5 (2856) 7.5 1st
Water (2530) 6.7 1st (1980) 5.2 3rd (2790) 7.3 1st (2590) 6.8 3rd
Banks (1275) 3.4 6th (1050) 2.8 6th (850) 2.2 6th (780) 2.1 6th
Electricity (2200) 5.8 2nd (2320) 6.1 2nd (2658) 7.0 2nd (2780) 7.3 2nd
Drainage (1760) 4.6 5th (1650) 4.3 5th (2340) 6.2 3rd (2170) 5.7 5th
Refuse disposal (1950) 5.1 4th (1780) 4.7 4th (1980) 5.2 4th (2340) 6.2 4th
Source: Author’s Field Survey, 2015

Respondents’ Level of Satisfaction with the Available Infrastructures in the Study Area

The satisfaction level of tenants in the zones was examined under three groups viz; satisfied, not satisfied
and indifferent. This is in order to answer researcher question four. The indifference is a situation where
respondent is undecided as to the indicated grouping. Table 4 below shows that 88.2% of the respondents
were satisfied with the road network in their areas and affirmed that the presence of these road has
contributed to the current values of their properties. 98.6% response rate obtained in the study area
indicated that the respondents are satisfied with the process of water supply in the zones. For power
supply in the zones studied, 94.7% of the respondents were satisfied with the electricity supply in the
zones. About 52.6% of the respondents were not satisfied with the number of banks available in the study
area.
36 Residential Housing Rental Values and ...

Table 4. Respondents’ Level Satisfaction with the Available Infrastructure

Satisfaction Level
Variables Satisfied Not Satisfied Indifferent Total
Road 335 (88.2) 40 (10.5) 05 (1.3) 380 (100)
Water 375 (98.6) 02 (0.5) 03 (0.9) 380 (100)
Banks 150 (39.5) 200 (52.6) 30 (7.9) 380 (100)
Electricity 360 (94.7) 15 (3.9) 0 5 (1.4) 380 (100)
Drainage 230 (60.5) 140 (36.9) 10 (2.6) 380 (100)
Refuse disposal 220 (57.9) 140 (36.8) 20 (5.3) 380 (100)
Source: Author’s Field Survey, 2015

Trend in the Annual Rental Values of Residential Properties in the Study Area

Rental trend is a general term often used to explain the movement of rent or the steady change in the
market price of real property over a given period of time, this change in price could be ascending or
descending in the market which could be due to speculation, change in taste and fashion, improve living
standard and other economic factors or reasons. A trend can be downward or upward, horizontal or
vertical depending on the series of related changes that are identified and projected into a plausible future.
When such trends are based on rental values then the observation will be confined to any evident changes
in rent patterns. Rents passing on properties are bound to be influenced variedly due to the heterogeneity
of real estate (Iroham, Oluwunmi, Simon and Akerele 2014). Tables 5, 6, 7 and 8 shows the average
annual rental trend of Face –to – Face, Semi detached and detached three bedroom bungalows in the study
area.

Table 5. Average Annual Rental Values in Okefia Zone (all amount in Naira)

YEAR 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Face toFace 600 600 800 800 800 1200 1200 1700 1700 2000
Semi detach 30000 30000 45000 60000 60000 80000 120000 150000 180000 210000
Detached 30000 30000 45000 60000 60000 80000 100000 130000 170000 210000
Source: Author’s Field Survey, 2015
 Ikpeme Anthony Ankeli et al. 37

Table 6. Average Annual Rental Values in Oke onitea Zone ( all amount in Naira)

YEAR 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Face toFace 400 400 400 400 700 700 1200 1200 1700 1800
Semi detach 25000 25000 35000 35000 55000 65000 65000 80000 120000 150000
Detached 25000 25000 35000 35000 55000 55000 70000 80000 130000 170000
Source: Author’s Field Survey, 2015

Table 7. Average Annual Rental Values in Odi - Olowo Zone (all amount in Naira)

YEAR 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Face toFace 200 200 200 500 500 800 800 1400 1400 2000
Semi detach 15000 15000 25000 25000 45000 60000 60000 80000 100000 130000
Detached 15000 15000 20000 20000 45000 70000 70000 80000 100000 140000
Source: Author’s Field Survey, 2015
38 Residential Housing Rental Values and ...

Table 8. Average Annual Rental Values in Ogo-Oluwa Zone (all amount in Naira)

YEAR 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Face toFace 500 500 800 800 800 1200 1400 1800 2200 2200
Semi detach 40000 40000 40000 60000 60000 80000 80000 120000 160000 180000
Detached 40000 40000 40000 60000 60000 80000 80000 120000 160000 180000
Source: Author’s Field Survey, 2015

All the property types shows a consistent upward trend from 2005 to 2014. The observable
margin in the rental growth rate of Face to Face on the one side and semi-detached and detached
bungalows are wide, the growth rate between semi-detached and detached bungalows is marginal.
The analysis indicates that investment in detached and semi-detached properties could be a wise and a
better option than investing in Face to Face residential properties. Again forecast of rental values of
residential properties in the areas under study for the next three years from 2014 was made. The analysis
revealed a continuous growth in the rental values of all the properties types understudy for the next three
years with detached bungalows exhibiting a better rental growth rate throughout the prediction period.

Summary of Findings, Implication and Conclusion

The study has evaluated the residential housing rental values and the provision of infrastructure
development in the study area. The study among other things revealed that, properties with better
conditions in terms of infrastructures and physical soundness command higher rental values, that
investment in residential property development will in the next few years continue to enjoy and maintain
an upward growth rate. Again that reasonable number of the tenants was not satisfied with the location
and services of the banks in the zones, thus there is need for the ministry in charge of land allocation for
infrastructural development and plan approval to revisit the situation on ground. It recommends the need
for the provision of essential basic infrastructure by government and its agencies and schedule sustainable
maintenance programmes for the infrastructure facilities provided. The study therefore concludes that
developers should ensures that all basic infrastructural facilities that will attract higher values to their
property be provided, government should make implementable policies and established housing quality
standard and supervisory agency that will be responsible for monitoring of housing standards.
 Ikpeme Anthony Ankeli et al. 39

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