AN ANALYSIS OF VARIATION ON RENTAL VALUE OF RESIDENTIAL PROPERTY IN NASARAWA TOWN

AN ANALYSIS OF VARIATION ON RENTAL VALUE OF RESIDENTIAL PROPERTY IN NASARAWA TOWN

ABSTRACT

This project work has said to be variation in rental value of residential properties among neighbourhoods in Nasarawa, Nasarawa State, Nigeria. The research employed the use of questionnaires as a method of data collection. A number of 175 questionnaires were administered out of which 100 were returned. The data were collected from the landlords, tenants and Estate agents of the selected properties in the neighbourhoods. The data collected were analyzed using tables. The findings indicated that amongst the selected neighbourhoods in Nasarawa, Tammah in terms of tenement has the highest rental value base on the fact collected, also one of the factors contributing to the variation in the rental value of residential properties was found to be infrastructure in the neighbourhood. It is therefore recommended that government should provide infrastructure in other neighbourhoods to attract rental value in other neighboorhoods.

CHAPTER ONE

1. INTRODUCTION

Shelter is a basic necessity in life. An individual can Satisfy this need by either occupying his own (owner’s occupier) property or renting another person property. In our traditional society the need for shelter is mainly met through the first alternative that is owner occupation. With the emergency of urban centers, the situation has changed. Many people are no longer about to own property because of the difficulty in the acquisition of land and the high cost of building construction. Therefore, they are left with the alternative of renting other people’s properties in order to satisfy their need for shelter. Consequently two classes of urban resident have emerged, the landlord and the tenant under this arrangement the tenant pays to the landlord a certain amount of money in consideration for his use of the landlord house. This amount is properly known as rent.

All over the world, renting offers a more affordable way for many people to gain access to accommodation. The provision of adequate housing is a very integral part of the needs of every society and has great value for individual, families, communities and society at large (Opoku and Abdul-muhmin, 2009). Revenue from rent serves as the main source of income for many local government, real estate developer and home owners. The attractive income from rent have led to the conversion of various structures into apartment for rent.

In urban area due to location advantage (for examples prime location) which some properties offers above others for residential uses, rent tend to vary on account of the type of use which a property can offer.

1.1       STATEMENT OF PROBLEM

Location of economic property has been a difficult concept to understand. Although the primary objective of residential properties is for habitation, shelter and comfort, the demand for land is a reflection of the profitability or utility derivable from it use. The greater the benefit to be obtained from a particular use, the higher the rent that the user will be willing to pay for it.

There appear to be wide ranging differences in the levels of rent passing on residential property in Nasarawa.

This research is seeking to find out what are the causes of spatial variation on rental value of residential property in Nasarawa.

1.2       AIM AND OBJECTIVES

AIM

The aim of this research is to analyze factors that influence variation of rental value on residential property.

OBJECTIVES

1. To determine the types of residential property in Nasarawa town.
2. To assess spatial variation on rental value of residential property in Nasarawa.  
3. To examine the factors that influence spatial variation in rental value of residential property.

1.3       RESEARCH QUESTIONS

1.   What are the types of residential property in Nasarawa town?

2.   What is the assessment of spatial variation in rental value of residential property Nasarawa?

3.   What are the factors influencing the variation on rental value?

1.4       SIGNIFICANCE OF THE STUDY

This research will help tenant to understand the reason why rent vary or defer.

It will enable the estate developers to understand how occupier thinks, also thing they consider before acquiring property for certain use.

This can also serve as a reference material for future use by student and researchers.

1.5       SCOPE AND LIMITATIONS OF THE STUDY

            SCOPE

The research work is restricted to selected property such as (residential property) comprising block of flat and tenement in Nasarawa town which limited to some selected neighbourhood such as Tammah, Shagari, Oversea and Millionaire’s quarter.

LIMITATION OF THE STUDY

This study was greatly affected by certain constrain which became unavoidably within the time limit for which the research was conducted.

1. Time constrains: The research was constrained by time limit. This posed a trait to the wide coverage intended in the cause of this study.
2. Cost factor: It is unusually that the prevailing economic conditions posed to a great extent, the problem of procuring the whole material information needed and other relevant statistical data.

1.6       HISTORICAL BACKGROUND OF THE STUDY AREA

Nasarawa town was brought up from small settlement into a prospective town of about 49,760 inhabitants. The history of Nasarawa shows that Malam Markama Dogo was the person that conquered Nasarawa town, so also the history of Nasarawa would not be complete without mentioning Keffi because the two are usually considered as one.

Tammah was a small village having a population of about 600 people and Gbaggi are the founder of Tammah and Egon people came there as a result of farming and few Bassa were also there with Gbaggi people before the arriver of Egon so luckily as the Federal Polytechnic was established in Nasarawa.

GEOGRAPHICAL LOCATION

Nasarawa town which is geographically located approximately between latitude of 646 and 739 and longitude 16N 2W. The town consist of little plan using evaluation of 600fit in the southern to above 400fit at the North East.

The town is located at 40km south Keffi town along Lokoja road. The ethnic group that could be found in Nasarawa town are Hausa, Gbaggi, Geda, Basa, Gwandare and host of others.

OCCUPATION

The geographical location of Nasarawa with the Savannah belt and vegetation favours agricultural production, as one of the economic activities of the town. The fertility of the soil and climatic condition sustain production of seed, vegetable and root crops. These agricultural crops include tomatoes, spinach, cassava, maize, yam, millet, garden egg, beans, geanicorn etc.    

EDUCATION

Nasarawa town may be referred to as a home of learning, comprising numerous primary and secondary schools amongst which are Government science school, Foundation. It also consist of tertiary institution, i.e.  the Federal Polytechnic Nasarawa.

RELIGION   

The town consists of two main religion set, namely; Christians consisting 47% and Muslim consisting 50% and the remaining 3% consists the traditional worshipers.