Effects of Infrastructural Facilities on Residential Properties Rental Values in Abeokuta, Ogun State, Nigeria

Abstract

This paper aims at examining the influence of infrastructures on rental values of properties in Kemta Housing Estate, Abeokuta, Ogun State. Infrastructure is key in the assessment of the status of any urban area. Real Estate is the physical and appurtenances affixed to land while Real Property which denotes ownership includes all interest, benefits and rights inherent in the ownership of physical real estate., the value of Property is affected by factors such as environmental, accessibility, neighborhoods and property characteristics. Questionnaires were given to the Residents of Kemta Housing Estate, out of 155 questionnaires administered, only 105(67%) were retrieved and used for the analysis. Frequency tables alongside percentages were employed in analyzing the information retrieved while level of importance of the infrastructure facilities was analyzed with Relative Importance Index. It was revealed that majority of the Residents are tenants (61%) and infrastructural facilities (73%) was a major influence on the value of properties in the estate, others include water, good roads and provision of security. Major findings of this study are that availability of Medical Facilities (RII=2.72), well maintained roads with RII=3.12, improved Electricity supply and Drainage systems with RII of 2.75 where the most important facilities that the Residents of Kemta Housing Estate loves so much. Continuous maintenance of the available facilities had great influence on the rental values of the properties in the Estate and there has been an annual increase of rent in the Estate. To enhance the livability of residents within the estate, proper maintenance of the available facilities and construction/purchase of more facilities is hereby recommended.