THE IMPACT OF POOR ROAD NETWORK ON RESIDENTIAL PROPERTY VALUE

THE IMPACT OF POOR ROAD NETWORK ON RESIDENTIAL PROPERTY VALUE

CHAPTER ONE

1.0       INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Transportation, the movement and exchange of people, goods and services is an obligatory feature of modern life (Umoren et al., 2009) because of its multi-dimensional functions and importance keeping relations and making integrations among every aspect of a society ranging from an individual to a nation. Road that act as key for transportation of people and materials from one place to another have spread like veins and arteries throughout the country and brought substantial development (Badigar and Badigar, 2003). The improvement of transportation through road networks between any two points leads to increasing regional specialization, reducing the transport costs, improved property value etc.Road networks are observed in terms of its components of accessibility, connectivity, and traffic density, level of service, compactness and density of particular roads. Access to major roads provides relative advantages consequent upon which residential properties are located to enjoy the advantages.

Roads may be classified as international, inter-city or intra-city. International and inter-city roads are usually major or arterial roads, while intra-city roads are routes within a city and may be minor or major (arterial). The pattern of road network somewhat influences ease of movements and provides accessibility to various land uses which compete for available spaces along the roads network. Properties tend to cluster along such roads to take relative advantages of agglomeration. Also, competition makes locations along the road to be at their highest and best use translating in high rental values compared to other locations lacking such competition.

Road construction is a socio–economic activity in most urban centers, it is long narrow piece of ground specially prepared with a hard level surface for people, vehicles to travel upon a greater part of the nation’s resources since 1941 had been spent in general development such as construction work, provision of water, telephone and development of road network. Since that period, road construction has become one of the most important considerable infrastructures in any locality within Nigeria. This is because accessibility provides conveniences in transporting people and conveying goods from one place to another. Good road network leads to communication between one locality and another, therefore, in any locality where there is good accessibility; there will be positive changes in physical appearance and economic activities which will result to appreciation of property values (Oni, 2015).

The opportunities open as a result of good road network leads to improvement in the general activities of people which facilitate business activities and provide links between neighboring areas. Transportation and property are important in physical and economic development of towns and cities all over the world. Property and land values tend to increase in areas with expanding transportation networks and road infrastructure, and increase less rapidly in areas without such improvements, rapid and continued rise in housing and prices are expected  in cities with road transportation network improvements and rapid economic and population growth (Gold Berg, 1970) man, nations, town regions and the world itself would be severely limited in development without road network transformational, which is a key factor for physical and economic growth (Oyesiku, 2002).

According to Bailey, Mokhtarian and Littlell (2008), Transportation route is part of distinct development blue print of any urban area in the world at present. The road network coupled with increased transportation, investment result in changed levels of accessibility reflected through cost benefit analysis, savings in travel time line and other benefits. These benefits are noticeable in increased catchments areas for service and facilities like shops, petrol filling station, hotel, schools, offices, banks, and leisure activities (Grass, 1992).

Road networks are observed in terms of its components of accessibility and traffic density and it control the level of service, compactness and density of particular roads. The level of service is measured by the quality of service on transportation devices or infrastructure is determined and it is a holistic approach considering several factors regarded as measures of traffic density. Modern businesses, industries, trades and general activities depend on transport and transport infrastructure, with movement of goods and services from one place to another becoming vital and unspeakable aspects of global and urban economic survival (growth). The study area is a typical example in the history of growth and development of city with improved road networks and road infrastructure developed to cater for increase in concentration of commercial activities, pedestrian and vehicular movements (Hack,2002). Similarly, commercial activities like retail, wholesale business, has attracted consumers and ancillary service providers. This partly caused increase in demand for residential space and its effects on residential property values along roads in the study area. There has been increase in rental values of residential properties along the road although not all equal rates in all areas. This research analysed the provision of road network in the residential neighbourhood of Nasarawa town on rental value.

1.       STATEMENT OF THE PROBLEM

The urban areas all over the world offer a number of advantages in terms of concentration of people followed by demand for residential properties and transportation. Construction of roads increased substantially with the opening up of residential area that also benefited from increasing demand for lettable spaces in residential properties. Many private companies, retail stores, commercial banks aggregate in the metropolis to take advantage of opportunities afforded by locations along the road network attracting complimentary services. This led to high concentration of vehicular and pedestrian movements especially along the access roads. Accessibility within the road network is affected by the compact nature of various routes that sometimes impede volume of traffic. The road network is made up of nodal points and links that determine the degree of connectivity and accessibility in the network. This connectivity is among the number of factors affect values of properties thus, this project seek to analyse the provision of road network in the residential neighbourhood of Nasarawa town.

1.3       AIM AND OBJECTIVES OF THE STUDY

The aim of this study is to analyze the provision of road network in the residential neighbourhood of Nasarawa town on rental values.

To achieve this aim, following specific objectives shall be pursued.

1. To assess the existing road network in Nasarawa town.
2. To examine the state of the available road network in the study area.
3. To determine the extent to which road network affects residential property values.
4. To evaluate the relationship between residential property and road network in the study area.

1.4       RESEARCH QUESTIONS

The following research questions will guide the researcher towards achieving the set aim and objectives of the study.

1. Is there existing road network in Nasarawa town?
2. What is the state of the available road network in the study area?
3. To what extent does road network affects residential property values?
4. What is the relationship between residential property rental value and road network in the study area?

1.       HYPOTHESIS

H0: There is no significant relationship between rental values of residential property and road network in Nasarawa town

H1: There is significant relationship between rental values of residential property and road network in Nasarawa town

1.       SIGNIFICANCE OF THE STUDY

This study focuses on the analysis of the provision of road network in the residential neighbourhood of Nasarawa town. This finding of this research will encourage government to provide good road network as it has positive impact on quality of life and residential property values.

The greater the accessibility of a location the comparative advantage to residential property users, and the greater the comparative advantages to the demand for more property in the study area and finally this research will also serve as a requirement for the award of Higher National Diploma (HND).

1.       SCOPE AND LIMITATIONS OF THE STUDY

This research is confined to the study of the analysis of the provision of road network in the residential neighbourhood of Nasarawa. The scope of the study will be limited tNasarawa town of Nasarawa state and it will also be limited to identifying the nature and state of available road network in the study area.

1.8       OPERATIONAL DEFINITION OF TERMS

Road: The Concise Oxford Dictionary defined road as specially prepared truck between places for the use of pedestrian, rivers and vehicles. It could also be a long narrow piece of ground especially prepared with a hard level surface for people, vehicles etc.

Road Network: Road construction is defined by Lord Hale to be open passage of bring, which from the situation of the adjacent land, and its own depth and wideness with nodal link and connectivity, afford a secure place for the common ridding and anchoring of vehicles for human and goods. Zangandlund University (2004), sees road network to consists of large number of interwoven roads exhibiting many patterns ranging from star like to grid – like with irregular patterns becoming recognized.

Neighbourhood: A neighbourhood is a geographically localised community within a larger city, town, suburb or rural area. Neighbourhoods are often social communities with considerable face-to-face interaction among members.

Residential Property: Residential property is a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for use as a dwelling; land that forms part of a garden or grounds of a building suitable for use as a dwelling.

Property: Is a legal concept encompassing all the interests, right and benefit related to ownership. Properties consist of the right of ownership which entitle the owner to a specific interest or interest in what is a physical entity and its ownership Olusegun (2003).

Rental Value: As the rent which is an annual or periodic payment of money for the use of land or of land and building, rental value is the highest rent obtainable for a property in an open market at any given time Olusegun (2003).

1.9       THE STUDY AREA

Nasarawa Emirate in Nasarawa State is located in the Central region of Nigeria. It is flanked by Keffi and the Federal Capital to the North. To the South, it is bounded by Benue River and to the west; it bordered the present Gadabuka and Toto Local government area which are of course, part of the Emirate. To the East, it is bordered by Doma, Lafia and Keana Local Government Areas all of Nasarawa State.

Physical Characteristics: The major things considered under physical characteristics of Nasarawa are, geographical location, temperature, rainfall, geology, wind, vegetation, humidity, soil.

Temperature: The temperatures are generally high during the day, particularly between the months of March and April. The main monthly temperatures in the state range between 20⁰C and 34⁰C with the hottest months being March/April and the coolest months being December/January.

Rainfall: The study area experience dry season without or little’s rainfall from November to March of about 95mm, which is wet season is from April to October of about 1.30mm,

Geology: From the Jos Plateau, this comprises of basement complex metamorphic rocks, granite and basalt of two or more ages. The basement complex is covered by shadow soil.

WIND: Nasarawa local government is determined by the seasonal movement on inter-tropical convergence zone [ITCZ], which represents the moving frontier between the moist Atlantic air from the south and the dry air from the north. In the dry season from November till March the north east wind are dominant. For the remaining of the year, the south-western winds are prevailing. Generally, the wind velocity is relatively low.

VEGETATION

Nasarawa is situated in the Benue valley between the Benue river and Jos Plateau. This area lies within the part of southern guinea savannah. The vegetation of Nasarawa has, to a large extent resulted from extensive agricultural use of the land, the predominant vegetation type is partly savannah which is characterized by a discontinuous canopy, shrubs and grasses many areas are affected by man through bush burning during the dry season. Among the common trees are oil bean trees, locust bean free and isoberline trees.

RELATIVE HUMIDITY

The relative humidity is the measurement of deepness of the atmosphere which varies from place to place and different time of the day. The level of humidity in Nasarawa state in January is quite less that 40% which rises as from February to July to about 88%. By April when the steady rain commences it will be about 75% by August when the inter-tropical discontinuity is at it northern part, must position of the entire state will experience tropical marine wind and continues till December.   

SOIL

The major soil units of Nasarawa belong to the category of oxisols or tropical ferruginous soils. The soils are derived mainly from the basement complex and old sedimentary rocks. Lateritic crust occurs in extensive areas on the plains while hydro orphic soils (limbic incept sols) occur along the flood plains of major rivers (Nyangba, 1995).

SOCIO-ECONOMIC CHARACTERISTICS :Nasarawa main economic activity is agriculture; cash crop, such as yam, cassava and egusi (melon). Production of minerals such as salt is also another main economic activity of people in the state; Nasarawa produces a large proportion of the salt consumed in the country.