Housing problems in urban centers have
often been viewed in terms of qualitative and quantitative inadequacy with or
without attention to the problem of increasing rent.
The rent which land and landed
properties may generate can be affected by some trends/factors, the aim of this
study is to access and probe into the circumstances responsible for the
constant changes in rental values of residential properties in the study area
which are as follows; the location factors, population, characteristics of
neighbourhood, architectural design, income of the people, facilities provided
among others. Also, the realism of future technological advancement influences
the rental value of property.
The periodic trend in rental value is
considered by some landlord/owners as easy access to boost their ego. It is
necessary to correct this in an area where development and commercial
activities are very rampant and also in an improved speed particularly in GRA
To determine the trends in rental values
of properties considering its location or position in Ilorin metropolis, its
level of commercial activities and the population of the people therein. It is
important and paramount to estimate and arrive at the most suitable and optimum
value for properties in other to forestall the level of its commercial
activities and also to encourage continuous developments.
The increment in rental values have been
a major setback to some people both individual, organization, government,
society etc. which have in one way or the other affected their income
generation. The problems have therefore led to changes in property value which
remained one of the most persistent and socio-economic problems facing
properties in the society at large.
The variation and the rise in the rents
of real estate had led to this research work, with the aim of examining the
causes, effects and the likely solutions to the problems.
Table of contents
Statement of the problem
Aim and objectives
Significant of the study
Scope of the study
Limitations of the study
Study Area (Geographical setting and
Definition of terms
2.0 Literature review
Concept of value
Concept of rental value
Nature of value
Concepts of rent
Factors affecting rental values of
Concept of property
Method of data collection
Sampling frame, sample size and sample
Data presentation and analysis
Data collection, data analysis and data
4.1.1Questionniare administered and
analysis of residential property types
of residential properties rental values
of increase in rental values of residential property.
5.0 Summary, recommendations and
Housing problems in urban centre have
often been viewed in term of qualitative and quantitative inadequacy with or
without attention to the problem of increasing rent. As there are many urban
residents struggling to get accommodation, most of them will have a roof over
their heads in rented accommodation. However, the majority of the low-income
earners are not comfortable because of galloping rent increases.
The problems reached a crisis in the
early 1970’s, which led the federal military government to set up a rent panel
to review among other things, the level and structure rents in urban centre.
Various long and short term recommendations were made and all state governments
were directed to implement them.
Today, the rent situation has not
improved rather it has been further worsened by the equally sprawling inflation
which has tremendously shot-up the cost of building materials.
This study therefore aims at examining
through empirical investigation the annual trend and variation in rental values
of residential properties in GRA Ilorin, using a time frame of the past ten
years (2003-2012). The study shows the variation and trend in the property
rents which can serve the basis for projection into the future to aid decision
making by investigators, managers and other stakeholders. It also identifies
the causes of rising trend and then recommends pragmatic solutions
Moreover, several factors do affect the
values of real property, these includes physical factor, economical, social,
political and environmental factors.
Physical factor is the factor that best
describe the physical appearance of a property in terms of the design and life
cycle, availability of certain service such as water, boiler, electricity,
garden and security. The economic factor is based on the reasonable significant
influence of property values in a favorable economic situation of many activities
that trends to yield returns consecutively.
Political factors are government laws
that inference in the public use of land in a way that will benefit them.
Example is the rent control edict.
Environmental factor simply describes
the location of a property, the neighbourhood and population phenomenal
(increase or decrease) which may cause positive or negative effect to the
values of such properties.
Finally, rate of (increase or decrease)
demands for landed properties, ranges from supply of properties, level of
employment, availability of mortgage loans facilities, low interest rate couple
with low tax burdens on property incomes are economic measures that have great
influence on property values.
Social factors are the role of the socio
activities that control human social behavior which coordinate their mode of
interaction and cooperation within the society.
The creation of Kwara state led to a
claim of economic and administrative actions in Ilorin, the state capital. This
has given rise to government decision to reserve an area for government to aid
administration. The influx of people into Ilorin
metropolis as a result of the conferment of capital status has increased demand
for residential property. There is inadequacy/availability of housing stock to
accommodate the increasing population of the town.
The above situation has given rise to
increase in house rent, increase demand for land and among others.
The aim of this study is to examine the
trends in rental value of residential properties in GRA[TPS 100] Ilorin, with a
view to identifying the causes of variation in values of residential
The specific objectives of the study
To identify types of residential
properties in the study area
To examine the rental values of
residential properties for the past 10 years (2003-2012) in the study area.
To examine the causes of variation or
trends in rental values of residential properties in the study area.
To examine factors that affects the
rental values of residential properties in the study area and provides
recommendations to the factors.
OF THE STUDY
The significance of this study are as
The study is significant to Estate
Surveyors and Valuers, Town planners, Quantity surveyors etc. because improved residential
property development will enhance their professional performance
To the general public, there will be
enough residential accommodation at their disposal for occupation at relatively
moderate rent of study will be taken and
It will assist in the forecasting of
future trend in rental value of residential property and therefore provide a
guide for prospective investors and policy makers
OF THE STUDY
The purview of this study is
specifically restricted to GRA (TPS 100) neighbourhood in Ilorin, Kwara state
in order to set a proper view of rental value trends of residential properties.
This study covers the trends in rental value of residential properties in the
study area for the past (ten) 1o years (i.e. 2003-2012)
Therefore, the study further examines
the type of residential properties available within the location.
OF THE STUDY
The researcher encountered a lot of
problems in the course of this research work. They include the following
this is uncooperative attitude of the respondent during the data collection.
Some landlords thought that I am a government agent that the data collected is
going to be used to tax them.
of cooperation: Some people bluntly refused to grant
interview or accept the questionnaire and where they accept, the information
supply will be false information. During the process some did not declare the actual rent collected on
shortage of finance affects this work in term of transportation to the study
area and typing of the project work.
some people bluntly refused to grant the questionnaire on the ground that they
did not want to disclose their identity.
It took a lot of time before this work is completed
Lack of proper and adequate records
on the rental value trends of properties in the study area.
AREA (GEOGRAPHICAL SETTING & HISTORICAL BACKGROUND OF STUDY AREA)
Ilorin was founded by one Ojo-Isekuse
(1600-1700). The name Ilorin was derived from
Ojo-Isekuse compounds now Oke-lele of Ilorin.
It was on the stone that Ojo Isekuse used to sharpen his hunting implement e.g.
cutlass and arrows hence “Ilorin”
(the sharpen iron)
Ilorin is essentially a Yoruba city
through people by many ethnic groups such as Yoruba, Hausa, Fulani, Nupe,
Kanuri etc. they all merged together and made the city a unique melting point
of cultures. At the same time they are all proved of their unique Ilorin identity. The
ruler of the city and its environs (the Ilorin
emirate) is of Fulani origin although the royal house had been Yorubanised
thoroughly; those who are far from the city make the mistake of thinking that
the various ethnic groups that fused together to make up Ilorin are separate and antagonistic towards
one another. The indigenes guard their Ilorin
cultural heritage jealously.
Ilorin is located at latitude 80300N
and longitude 40350E. It lies in the plain of the south
–western part of Nigeria.
The city which lies along Lagos-Kaduna highway is 306 kilometers from Lagos, 600 kilometers from Kaduna
and about 500 kilometers from Abuja.
The main river is Asa River; it occupies
a fairly wide valley and flows south-north direction. The river divides Ilorin into two parts: western part representing the lore
of indigenous area of Ilorin
and the eastern part representing the area where the government reservation
area (GRA) is located. Towards the north of this western part is an isolated
hill; called Sobi hill. The hill is about three hundred and ninety-four (394)
feet high above the sea level.
Ilorin was a tropical wet and dry
climate. It has mean annual rainfall of about 1318mm, which begins in April and
ends in November. It has a population of about 742,090 people.
The area of study in this project is the
government Reservation Area (GRA). GRA is an extensive area to the
North-eastern part of Ilorin.
It was acquired for government use by the old colonial administration in the
early part of the 20th century. Government offices and scattered residential houses were
constructed there. Many of the British colonial officers and their Nigeria
counterpart lived in the area. At independence in 1960, many more Nigeria moved
into the GRA and later large plots of land area were allocated to the elite
class and they built their houses there. Some also rented out their premises to
one who acts on behalf of another; a person appointed to conduct the affairs of
a principal. (Champman D. H. 2002)
to sell by means of increasing bids, the highest bidder becoming the purchaser.
(according to above name]
one who conducts a sales by auction and who, despite received folks lore never
says “going, going, gone”. (according to above name)
a body or person given legal power to carryout certain specified tasks, such as
local authority, highway authority. (according to above name)
a clause in a lease etc. whereby a party binds himself to do or not to do
certain thing. (according to above name)
despite its common meaning of an area of landed property but in this context,
it is the interest a person holds in land. (Shittu Gbeko T. 2004)
a person, or body of person who grants a lease of land or tenements to a tenant
under a contract of tenancy. (champman D. H. 2002)
lease is a property transfer arrangement, where the landlord (lessor) transfers
the use and possession rights of his property to the lessee for a definite
period of time in consideration for payment of rent, which can be periodically
or any other period subject to the arrangement between the lessee and the
lessor (Kuye O. 2003)
a price or reward; hence a capital sum paid by a lessee to a lessor for the
grant of a renewal of a lease on favorable terms. (kuye Olusegun, 2000)
in a wide legal sense, anything that is the subject matter of ownership (Okoh S. O. 2001)
a periodic payment usually in money, although it may be in kind made by a
tenant to a landlord for the use of land, house etc. (Kuye Olusegun 2000)
in investment, an overall term after a stock share, debenture etc. representing
invested cash (Champman D. H. 2002)
an agreement whereby a tenant yields up his tenancy to his landlord before the
term is expired (Oyiboka E. 2000)
a person, or body of persons, who holds trends or tenements from a landlord in
lease hold tenure (Champman D. H. 2002)
Valuer: one who values all types of property
for purchase, sale, letting investment, rating and other purpose. (Kuye O.
value is the highest price estimated in terms of money which a property would
bring if exposed for sale in the open market allowing a reasonable time to find
a purchaser who buys with the knowledge of all the uses to which it is adopted
and for which it is capable of being used. (Kuye O. 2000)
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