THE ROLE OF INFRASTRUCTURAL FACILITIES ON RESIDENTIAL PROPERTY VALUES IN NIGERIA.

THE ROLE OF INFRASTRUCTURAL FACILITIES ON RESIDENTIAL PROPERTY VALUES IN NIGERIA.

ABSTRACT

Infrastructure play a vital role in the determination of rental values on residential property in the society. It is an embracing concept for the wide range of services offered by the government of any country in order to facilitate healthy living aesthetic. Infrastructural facilities include water supply, electricity, drainage, communication. However all point to the fact that infrastructure is the basis of development of any nation and that its provision in most cases is by the government. Non- existence of these infrastructural facilities will lead therefore lead to isolation of any nation within or without economic stagnancy, retarded national development and most of all, may create problem against the populace.

CHAPTER ONE

 1.0   INTRODUCTION

One of the most remarkable improvements associated with the process of socio-economic changes in Nigeria during the last fifty years has been the clamor for the increase in the state of infrastructural facilities.

         

Infrastructural facilities embraces entirely any services in which the various levels of government in the country as well as various communities are collectively involved in its provision.

This also includes services provided by voluntary agencies and private individuals.

Infrastructure is an embracing concept for the wide range of services offered by the government of any country in order to facilitate health living aesthetic.   Infrastructural facilities include; water supply, electricity, transportation, drainage system, communication e.t.c.  Non existence of these infrastructural facilities in any residential property will affect the rental value of such property.

In the light of the harsh condition Nigeria has been going through recently, skyrocketing cost of building materials and construction, high cost of finance and unpredictable economic condition, there has been decrease in infrastructure and little or no maintenance of the existing stock.   Investment must be strategically positioned where it has access to basic infrastructure so as to keep the property in a state to command a constant flow of income or benefit and appreciate it capital value.

Considering the problem of increasing the cost of providing infrastructure, the dilapidated one are still in use, the federal government and it agencies left the petroleum trust fund [P.T.F] doing all they could to improve the present infrastructure facility stock.  But the fact remains that, the government does not have enough fund to improve on the entire stock.

1.1     BACKGROUND OF THE STUDY

Real estate developers were constantly faced with the issue of making decisions on the type of property to invest their hard earned income or highly competitive, secured mortgage funds, which were attached with high lending rates. Property developers who want to invest in residential building development should endeavor to provide these two infrastructures amongst others with a view to earn attractive rental values on their residential property in Niger state in particular, towns and cities in developing countries. The study revealed that infrastructural facilities contribute 30.50% in the determination of rental values residential buildings in Niger state of which the provision of wall-fence round the building and installation of burglary proof in the entire window played the most important infrastructure. It is hoped that this will assist the local planning authorities to map out proposal/development in their different areas of jurisdiction in addition; it will render meaningful in the development of strategies for estate layout that will promote urban environmental quality thereby enhancing property values in the areas. The primary data collected were subjected to multiple regression analysis and the determination of the effect of the available infrastructure such as water, electricity, access road, kitchen, toilet, refuse disposal facility, wall-fence, installed burglary proof, drainage channel, day watch security and night watch security services. Government should continue to embark on comprehensive road rehabilitation by tarring all the roads in the areas of the city suffering from poor road network, poor electricity. It has now been realized that state government cannot provide all the necessary facilities, hence individuals and federal government should come to the aid of the state government for the provision of the essential infrastructure such as roads, water and electricity supply e.t.c.          

 1.2   AIM AND OBJECTIVES OF THE STUDY

The aim of the study is to examine the urban infrastructural facilities in Lavun local government Kutigi with a view of making useful recommendation for the improvement of infrastructural facilities in Kutigi.    

The special objectives for realizing this aim are;

a.   To study the concept of urban infrastructure in the society.

b.   To identify factors effecting the efficiency of infrastructural facilities.

c.   To identify the available infrastructural facilities in the study area.

                   

1.3    STATEMENT OF PROBLEMS

The major problem identified in the course of the study is that the present infrastructural facilities are inadequate to meet the need of it users or occupier of the residential properties.             

This has posed a problem for the various levels of government of the day and parastatals on what to do to improve on the present situation considering the poor financing power of the government parastatals, high cost of construction and materials with the unpredictable socio-economic developments.  

It is therefore in light of these, that the study tends to identify these infrastructural facilities how far they have gone in meeting the demand and expectation of it users, and examining the adequacy of urban infrastructural facilities on residential housing development.

1.4   RESEARCH METHODOLOGY

In the process of completing data and information, for writing this project and to entrust a good project, the following were taking into consideration namely; availability; reliance, timeless, consistency.          

          SOURCES OF DATA COLLECTION

Under this data collection there were two sources consulted for collection of data.

A.  PRIMARY DATA COLLECTION                                                                                                  primary data collection method used by the researcher is entirely for this project at hand in this study.

The researcher used the following combination for primary data collection, these includes; colleagues in work and housing department in the local government and some developer, house owner.

B.   SECONDARY DATA COLLECTION

They include data from various text book on infrastructure and property development journalists in newspaper, pamphlets, article, symposium papers presented.

1.5     SCOPE OF STUDY

The study is expected to cover all areas in the Lavun local government, but as a result of local government factors, the population size has been reduced. In this regard, the study was centered only in Kutigi metropolis.      

1.6    SIGNIFICANCES OF THE STUDY

The importance of infrastructural facilities as a monument tool for residential property values is that the study will fund to serve as a guide to the government parastatals and private individuals in decision making especially in local government.

        

CHAPTER TWO

2.0    LITERATURE REVIEW

2.1    INFRASTRUCTURE

There are various definitions, meaning and concept ascribed to the word infrastructure, right from the evolution and creation of town and cities throughout the world.  Some of the definition of infrastructure is here by examined.  Webster [1978] states that infrastructure are works constructed for public use of enjoyment especially when financed and owned by the government.                                                                        

The English Collins dictionary defined infrastructure as includes building, structures and use of land are provided by developers or statutory authorities example are railway, road bridges, gas, electricity ,water, sewage/waste disposal, telephone installation e.t.c.  From the above definitions it is clear that different perspective exist as regards infrastructure.  However, all point to the fact that infrastructure is the basis of development of any nation and that its provision in most cases is by the government.

2.1.1    TYPES OF INFRASTRUCTURE

Infrastructure is an embracing concept for the wide range of direct services offered by the government of any country so as to facilitate healthy living aesthetic.

Emeluruike [1997] attempted a classification of infrastructure in an urban area, which includes;