Analyzing the Dynamics of Residential Properties’ Rent in Ede, Nigeria

  • Augustina CHIWUZIE Estate Management Department, Federal Polytechnic Ede,PMB 231, Ede, Osun State.
  • Eleojo Grace AIYEPADA Department of Estate Management, Federal Polytechnic Ede, Nigeria
  • Edith Mbagwu PRINCE Department of Estate Management, Federal Polytechnic Ede, Nigeria
  • Bamidele Olubunmi AJIBOYE Department of Estate Management, Federal Polytechnic Ede, Nigeria
  • Sayo Tolani OLAWUYI Department of Estate Management, Federal Polytechnic Ede, Nigeria
Keywords: Dynamics, Growth, Nigeria, Rental value, Residential Properties, Trend

Abstract

Rental movement is an important parameter in real estate investment and can influence the supply of rental accommodations in the property market. This study empirically analyzed the trend in rents and growth rates of five residential property categories comprising tenement room, one room self-contained, room and parlour self-contained, two bedroom flat and three bedroom flat to determine the property with highest trend and growth rate; and whether the growth rates across the five property categories differ significantly in the study area between 2002 and 2017. The study utilized residential properties’ annual rent as primary data.  The primary data was collected through questionnaire administered on landlords who rented their properties within the study period and comprised rental values of five residential property categories between 2002 and 2017. Descriptive and inferential statistical techniques such as frequency table, chart, ANOVA and linear regression were used to analyze the data collected. The results revealed that annual rental values of all the selected residential properties maintained upward trend over the period studied. Three bedroom flat had the highest trend in rent and highest R2 value (0.89) implying it is the property whose rental values can be most ascertained with each successive year under study. The findings furthermore revealed that the average yearly growth rates of the selected residential properties ranged from 17.01% to 20.83% during the study period with three bedroom flat having the highest growth rate. The ANOVA result however suggested that the mean rental growth rates across the selected residential property categories at 95% confidence level were not significantly different F (4, 70) = 0.345 P = .847 > .05. This study brings to fore the localized rental income levels and the impacts they have on rental growth rates, which is necessary in the process of understanding investment returns in the residential submarket.

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Published
2019-12-11
How to Cite
CHIWUZIE, A., AIYEPADA, E. G., Mbagwu PRINCE, E., AJIBOYE, B. O., & OLAWUYI, S. T. (2019). Analyzing the Dynamics of Residential Properties’ Rent in Ede, Nigeria. Journal of Research in Business, Economics and Management, 13(4), 2555-2563. Retrieved from http://scitecresearch.com/journals/index.php/jrbem/article/view/1813
Issue
Vol 13 No 4: JRBEM
Section
Articles

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