EVALUATING THE CONTRIBUTION OF URBAN INFRASTRUCTURE ON PROPERTY VALUE IN MINNA, NIGER STATE, NIGERIA

Abstract

The research evaluates the contribution of urban infrastructure to property value in Minna. The primary data collected for this research included conditions of infrastructure parameters and annual rental values of properties in the different neighbourhoods in Minna. Methods of data analysis included analysis of variance (ANOVA) to determine the infrastructure quality index at all neighbourhoods, correlation analysis to determine the relationship between average infrastructure quality and average property value at all neighborhoods, and regression analysis to compare infrastructure quality and property value at all sampled locations. Assessment of property values by correlation analysis revealed that property values measured as average rent (avre) differ across all six neighborhoods sampled. This is because the coefficient of determination (R2) observed was 76%. This meant that variations in average infrastructure quality (iqi) were responsible for about 76% of variations in property values. Regression analysis also provided evidence of a statistically significant relationship between property values and infrastructure quality, measured across all sampled locations with an R2 value of 0.070. This meant only 7% of variations in property values could be attributed to variations in infrastructure quality across the sample to neighborhoods. The results meant that there is a statistically significant relationship between neighbourhood infrastructure quality and property value in Minna. It was recommended that there is need for an urgent upgrade of the infrastructure in the neighborhoods to become bigger agents of value creation for property investors as it is in most developing and developed economies.