INFLUENCE OF LAND USE CONVERSIONS ON PROPERTY RENTAL VALUES IN SOUTH WEST, NIGERIA

Abstract

The unabated land use conversions and their unprecedented consequential influence on rental value performances in south west Nigeria necessitated this study. Hence, the aim of the study is to examine the influence of land use conversions on property rental values in Ikeja, Osogbo and Akure with the view to providing baseline information that could guide real estate investment decisions. The aim was achieved through the examination of the causes of land use conversions in the study areas between 2004 and 2019, the assessment of before and after use rental trend of converted properties, the determination, using predictive model, the influences of land use conversions on property rental values in the study area as well as the analysis of the location variation in rental values caused by the pattern of land use conversions. The methodological approach adopted for the study reflected the nature of quantitative data required. Data on the causes, trend and influence of land use conversions on rental value performances for the study period were collected using primary sources and analysed using both descriptive and inferential statistical tools. The study however, achieved its first objective through the analysis of data on the causes of land use conversions using descriptive and inferential statistical tool. The second objective of the study was achieved through the scrutiny of the aggregated rental values data and land use conversions sourced through primary data sources which were later analysed through inferential statistical tool (trend analysis). Objective three was achieved through the assessment of the influence of land use conversion variables on rental values using Structural Equation Model - Analysis of Moment Structure (SEM-AMOS) graphics. Analysis of Variance was used to achieve objective four. The study revealed that, economic factors stand out as a major land use conversion factor across the study areas; there was a reasonable rise in the values of after use conversions across the study areas which makes investment in after use conversion a better investment option; land use conversion activities have 25%; 74% and 96% influences on rental values in Osogbo, Akure and Ikeja. The study therefore concluded that the consistent unabated rise in illegal land use conversions especially in the study areas is traceable to ineffective institutional framework (Osogbo and Akure) and unguided population influx (Ikeja). The study among other things recommended the formulations of policies / regulations that are proactive, protective and competitive that will strengthen the institutional framework at the state levels, facilitate the adherence to law and order and move the states towards being a perfect liveable and sustainable city.