Effects of Infrastructural Facilities on the Rental Values of Residential Property

Abstract

<b>Problem statement:</b> Real estate developers were consistently faced with the issue of making decisions on the types of property to invest their hard earned income or highly competitive secured mortgage funds, which were attached with high lending rates. One of the different sectors that are begging for such investment is residential property development. <b>Approach:</b> This study evaluated the effects of available infrastructure in residential property on its rental values in Akure, Ondo state, Nigeria. Two different sets of questionnaires were designed and administered for the collection of primary data used in the study. The first set of questionnaires was for the tenants of residential property while the second set of questionnaires was administered on the practicing estate surveyors based in Akure. The questions in the questionnaires amongst others probed into the types of available infrastructure in the rented apartment, rent paid, income of household-heads and family size. Primary data collected were subjected to multiple regression analysis and the determination of the effects of each of the available infrastructure (water, electricity, access road, kitchen, toilet, refuse disposal facility, wall fence, installed burglary proof, drainage channel, daywatch-security and nightwatch-security services) on the rental value was achieved. <b>Results:</b> The study revealed that infrastructural facilities contributed 30.50% in the determination of rental values of residential buildings in Akure; of which the provision of wall-fence round the building and the installation of burglary proof in all the windows played the most important infrastructure. <b>Conclusion:</b> Property developers that want to invest in residential buildings development should endeavour to provide these two infrastructure amongst others with a view to earn attractive rental values on their residential property in Akure in particular and towns and cities in developing countries

Measuring Satisfaction with Student Housing Facilities

“…According to Melnikas (1998) and Olujimi and Bello (2009), housing facilities can be defined as rooms furnished with sophisticated amenities, suitable to house social activities and indicative of a certain lifestyle. The major need addressed by such facilities is a dwelling, but we also argue that the desire to interact and socialize with friends or to attain a desired social status may explain why individuals demand some housing facilities.…”

“…A good pantry must be included in student housing to create a home-like environment. Few researchers clinch that equipping this facility is an inevitable (Olujimi and Bello, 2009;Taha and Sulaiman, 2010). The results shown in Table 3 indicate that the students have ambivalent feelings about the provided pantry.…”

“…Previous studies have identified characteristics that influence resident satisfaction with student housing. Koch et al (1999) and Olujimi and Bello (2009) specify that kitchens, private bathrooms, study lounges and social spaces are considered basic necessities in student housing. Schenke (2008) highlights the value placed on Internet access, either through a network connection or Wi-Fi, in each student's room.…”

Urban floods and residential rental values nexus in Kumasi, Ghana

“…To Selim, the type of house, type of building, number of rooms, size, and other structural characteristics such as water system, pool, natural gas were the major determinants of house rental values (Selim, 2008). Olujimi& Bello (2009) evaluated the availability and effect of infrastructure on rental values in residential property in Nigeria, particularly in the Akure of the Ondo State. The study utilized the hedonic approach based on regression analysis.…”

“…The results showed that, 30.5% of rental values of residential buildings were attributed to infrastructural facilities particularly the provision of wall-fence and windows with burglar proof. Subsequently, they recommended that for residential properties to command competitive rental values, amenities likewall-fence and windows with burglar proof amongothers should be provided (Olujimi & Bello, 2009). Larsen (2010) reported on a study to determine whether investors pay less for single-family houses than do buyer/residents.…”