Rental variations in nigerian housing

Project Abstract

The Nigerian housing market exhibits significant variations in rental prices across different regions, cities, and types of housing units. This research project aims to investigate the factors contributing to these rental variations in Nigeria and analyze their implications for the housing sector. The study will employ a mixed-methods approach, combining quantitative data analysis with qualitative interviews to provide a comprehensive understanding of the rental dynamics in the Nigerian housing market. The research will focus on identifying key determinants of rental variations, including location, property type, amenities, and market demand. By analyzing rental data from various sources, such as real estate listings, government reports, and housing surveys, the study will assess the impact of these factors on rental prices in different regions of Nigeria. Additionally, interviews with real estate experts, property managers, and tenants will offer valuable insights into the underlying reasons for rental variations and the challenges faced by both landlords and tenants in the Nigerian housing market. The findings of this research project are expected to shed light on the complex dynamics driving rental variations in Nigeria and provide valuable information for policymakers, real estate investors, and other stakeholders in the housing sector. By understanding the factors influencing rental prices, stakeholders can make informed decisions regarding property investment, urban planning, and housing policies to promote affordable and sustainable housing in Nigeria. Overall, this research project contributes to the existing literature on housing markets in developing countries by examining the specific case of Nigeria and highlighting the factors shaping rental variations in the country. The study's findings will not only enhance academic knowledge about the Nigerian housing market but also offer practical insights for improving housing affordability, accessibility, and quality for both landlords and tenants in Nigeria.

Project Overview

<p> </p><p>1.0 &nbsp; &nbsp; INTRODUCTION</p><p>1.1 &nbsp; &nbsp; BACKGROUND OF THE STUDY</p><p>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’s 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’s house. This amount is popularly known as rent.</p><p>During the civil war the Nigeria that is 1966 to 1970 many landed properties in the urban areas of the former Eastern Region of Nigeria, including Enugu, were destroyed. Consequently, there was a sharp decline in the supply of landed properties after the war. Furthermore, the post – civil war period witnessed an unprecedented number of the rural population trooping into the urban centres due to the conspicuous prosperity brought about in the urban area by the oil boom. This</p><p>resulted &nbsp;to &nbsp;high &nbsp;demand &nbsp;for &nbsp;the &nbsp;existing &nbsp;limited &nbsp;supply &nbsp;of &nbsp;landed &nbsp;properties. Consequent upon these, rent for landed properties increased considerably.</p><p>This trend has continued with the effect that “the average worker is paying</p><p>30% to 40% of his salary as rent” (Oshadiya, 1985). Thus the increase in rents on</p><p>the properties has led to the variation of rent on properties.</p><p>In urban area due to location advantage (for example prime location) which some properties offer above others for commercial and residential uses, rent tend to very on account of the type of use which a property can offer.</p><p>1.2 &nbsp; &nbsp; STATEMENT OF PROBLEM</p><p>Location of economic properties has been a difficult concept to understand. Although the primary objective of commercial properties is the derivation of financial gains, while that of residential properties is for habitation, shelter and comfort, the demand for land is a reflection of the profitability or utility derivable from its 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.</p><p>There appear to be wide ranging differences in the levels of rent passing on residential and commercial properties in Enugu and Nigeria generally.</p><p>This research is seeking among other things to find out the causes of rental variation in commercial and residential properties in Nigeria, Ogui New Layout and G.R.A as a case study.</p><p>1.3 &nbsp; &nbsp; AIM AND OBJECTIVES OF THE STUDY</p><p>The main aim of this research is to examine the reasons for rental variation in commercial and residential properties with a view to provide tool to be used in catching issues related to rent on these properties in Enugu and Nigeria generally.</p><p>To achieve the standard goal, the following objectives are to be pursued;</p><ol><li>i) To identify the level of rents for commercial and residential properties in the study</li><li>ii) To ascertain and examine the factors influencing the rents being commanded by these properties.</li></ol><p>iii) &nbsp; &nbsp; To determine or examine whether the income of prospective buyers/tenants affect their decision to acquire properties.</p><ol><li>iv) To ascertain &nbsp;if &nbsp;there &nbsp;is &nbsp;disparity &nbsp;in &nbsp;rental &nbsp;values &nbsp;for &nbsp;residential &nbsp;and commercial properties in the study</li><li>v) To find &nbsp;out &nbsp;the &nbsp;rate &nbsp;of &nbsp;demand &nbsp;between &nbsp;commercial &nbsp;and &nbsp;residential properties?</li></ol><p>1.4 &nbsp; RESEARCH QUESTIONS</p><ol><li>i. What is the level of rent for commercial and residential properties in Ogui</li></ol><p>New Layout and G.R.A respectively between years 2002-2004?</p><ol><li>ii. What are the factors influencing rents passing on those commercial and residential properties.</li></ol><p>iii. &nbsp; &nbsp; Does the income of prospective buyers/tenants affect their decision to acquire properties?</p><ol><li>iv. Is there any disparity in the rental value or rent passing on residential and commercial properties in the study area?</li><li>v. Amongst properties put for Commercial and Residential use, which is on a higher rate of demand?</li></ol><p>1.5 &nbsp; &nbsp; &nbsp;SIGNIFICANCE OF THE STUDY</p><p>The finding of this study will be of benefit to the following groups;</p><p>Firstly, tenants who are charged rents based on different reasons, especially when the properties are of the same nature (physically). This will again enable the investors not only to understand how occupier thinks, but also why and the things they consider before acquiring properties for certain uses.</p><p>Secondly, the generality of the public can now understand the reason why the rents being commanded by these properties have to differ.</p><p>Lastly, this research work will help to determine the factors influencing, commercial and residential properties which is an essential pre-requisite to successful development as well as stimulating interest in the students to carryout out further research on the topic.</p><p>1.6 &nbsp; &nbsp; SCOPE OF THE STUDY</p><p>The study covers a period of three years (2002 to 2004) and it is restricted to selected properties (Residential and commercial) comprising blocks of flat and tenements in Ogui New Layout and G.R.A, Enugu.</p><p>1.7 &nbsp; &nbsp; LIMITATIONS OF THE STUDY</p><p>Expectedly, this work met with some hindrances during the stage of data collection. The issue of rent passing on a property (residential or commercial) is usually regarded as classified information, which is not easily disclosed to people particularly researchers. This was largely suspected to be the reason why some Estate surveyors, property owners, tenants, Estate firms, property companies and even Estate agents who were approached through oral interviews, discussions and visitations found it rather difficult to reveal essential information despite every explanation that the exercise is strictly for academic purposes, a good number of them, still nursed the fear that it may be for property rating and taxation purposes.</p> <br><p></p>