COMPARATIVE ANALYSIS OF IMPACT OF INFRASTRUCTURAL FACILITIES ON VALUES OF RESIDENTIAL PROPERTIES

COMPARATIVE ANALYSIS OF IMPACT OF INFRASTRUCTURAL FACILITIES ON VALUES OF RESIDENTIAL PROPERTIES

A STUDY OF MARARABA AND ABACHA ROAD KARU LGC

ABSTRACT

These projects is a comparative analysis of the impact of infrastructural facilities on value of residential properties, in study  Study Of Maraba And Abacha Road Karu LGC. The study examined among other things, the provision of infrastructural facilities as an impetus for real Estate development and value in the study area. The study employed the use of structured questionnaire; the data collected were analyzed through simple percentage tables. The study revealed that the residential property in the study area has very limited number of these infrastructure facilities. The result of inadequate provision of these facilities has in most cases being reflected in the amount of rent paid for the properties in study area i.e. Maraba and Abacha Road in Karu LGC. It is also seen that properties in Abacha road command more rental value than those in Maraba which is also dependent on the facilities provided within the residential properties. It is therefore recommended that infrastructures should be provided by both the private and public sectors to better the lot of the residents and to also ensure continuous flow of investors’ income (rent).

CHAPTER ONE

1.0     INTRODUCTIONS

One of the remarkable developments associated with the process of socio- economic change in Nigeria during the last seventeen years has been the damour for increase and improvement of infrastructural facilities. Infrastructural facilities involve the provision of services which the various levels of government in the country as well as various communities are collectively involved. This also includes services provided by voluntary agencies and private individuals for the benefits of the community at large. In the light of the harsh condition Nigeria has been going through recently, sky rocketing cost of building and construction, high cost of finance and unpredictable economic conditions there has been decrease in infrastructure development and little or no maintenance of the existing stock. There has therefore, arisen a need for finding alternative means of infrastructure development as it relates up grading and managing the present. Stock, thus, preserving our built emolument. In line with the basic need of shelter and its preservation, the need to have basic infrastructure in place for the development. Individual who commits capital into real estate as an investment intends to reap optimum returns from such investments. In order to achieve this aim, the investment must be strategically positioned where it has access to basic infrastructure so as to keep this property in a state to command a constant flow of income or benefits and an appreciation in capital value. The majority of investors in residential properties development in Nigeria are individual and a handful of corporate concerns, considering the problem of increasing cost the dilapidated ones still in use, infrastructure is almost static which over stretching of the existing ones continues. The federal government and it agencies like the development control have been doing all they can to improve the present infrastructural facilities stock. But the fact remains that the government does not have enough fund to improve on the entire stock. The study is critically examining the presence state of infrastructural facilities and will also recommended ways to improve these facilities. This is an attempt to increase values to tenants, optimize returns to property owners and presence our build environment. The findings could therefore be applicable to other residential areas presenting problem in Nigeria.

1.1     STATEMENT OF THE PROBLEM

Infrastructure facilities have over the years contributed immensely to the general well being of developed nations. Developing nations have also being able to exploit these facilities though not at a highly appreciative level Nigeria has over the years being grappling with the problem of inadequate infrastructural facilities. Corruption has being the bare of adequate provision of these facilities. Residential properties in Minna has very limited number of ‘wit1i these infrastructure facilities. The result of inadequate provision of these facilities has in most cases being reflected in the amount of rent paid for properties in Minna Residential properties areas that have of these facilities ar experiencing poor maintenance which affect their longevity the problem is Property owner in Minna are often unaware of how infrastructural facilities could to a large extent influence rent paid for there properties. This is evident in the fact that only few of them make effort to either proved these facilities or make effort to ensure that these facilities are provided.

1.2.    AIM AND OBJECTIVES OF THE STUDY

The aim of this study is to carry out a comparative analysis of the impact of infrastructural facilities on value of residential properties. A study of of Maraba and Abacha Road in Karu Local government council.

To achieve this aim the under listed objectives will be pursued.

1. To identify the infrastructural facilities in the study area.
2. To analyze the relationship between infrastructural facilities and property value.
3. To determine the nature and pattern of trends in rental values of residential property in the study area.
4. To compare the impact of infrastructure facilities on value of residential properties in Maraba and Abacha Road.

1.4       Research Question

The following research questions shall guide the researcher towards achieving the set aim and objectives:

1. What are the types of infrastructural facilities in the study area?
2. What is the relationship between infrastructural facilities and property value?
3. What is the nature and pattern of trends in rental values of residential property in the study area?
4. What is trend in the impact of infrastructure facilities on value of residential properties in Maraba and Abacha Road?

1.5       Significance of the Study

This project is an attempt to carry out a comparative analysis of the impact of infrastructural facilities on value of residential properties in Maraba and Abacha Road in Karu Local Government Council, the study discuss the types of residential property in the study area, identifies the types and condition of available infrastructural facilities available and tries to establish the relationship between infrastructural facilities and residential property rental value. The result of research will help developers, investors, real estate managers and valuers and the government to know the relevance of infrastructural facilities to residential properties and its effect on rental value thus given them a better chance to an informed decision.

The study will assist public authorities in putting more efforts in infrastructural investment and as well take full advantage of the income that can be generated from such investment.

This study will also serve as a reference material for subsequent research related to the effect of infrastructural facilities on residential property value where researchers, students and scholars will tap into the wealth of knowledge provided in this study.

1.6       Scope and Limitations of the Study

The research work is confined to the comparative analysis of the impact of infrastructural facilities on value of residential properties in Maraba and Abacha Road in Karu Local Government Council,. It deals with rental value of residential properties such as single room, two bedroom flats and three bedroom flats which are the common types of residential properties found in the study area.

There are several limitation encountered during the conduct of this research. These limitations include: non availability of adequate data which played a major limitation to this write up because of non-cooperative attitude of some respondents who were not willing to give information and data needed to aid findings, time was another major factor which affect the study as the researcher do not have enough time to make detailed investigation on all the aspects of the study. And the general unwillingness of some respondents to fill the questionnaire provided for the research made it difficult to gather data needed for this research study at the most appropriate time.

1.7       Operational Definitions of Terms

Residential Properties: Oxford advanced learners dictionary defined residential properties as properties suitable for living in, consisting of houses rather than factories, or offices.

Property: Property is by property dictionary as anything that is owned by a person or entity, which be divided into “real property” and personal property.

Infrastructure: This is seen as a wide range of economic and social facilities crucial to creating an enabling environment for economic growth and enhances the quality of life, Nubi (2002).

Value: Value is basically the worth of a thing which depend largely on the basis of assessment and unit of measurement.

Property Value: property value according to Millington (1981) is the money obtainable from a person willing and able to purchase property when it is offered for sale by a willing seller, allowing for reasonable time for negotiation and with the full knowledge of the nature and uses which the property is capable of being put.