Assessment of the Contribution of Environmental Attributes to Residential Property Rental Value in Abuja

Abstract

The contribution of environmental attributes in residential price determination is premised on the issue relating t inefficient attributes pricing. The study analysed three environmental attributes such as structural, neighbourhood and natural attributes of the environment with a view to determining its hedonic value upon which residential propert price is derived. In order to achieve the aim of the study, a sample size of 2401 was drawn out of 104166 propertie using estimation method; 50% estimation rate and precision range of ±4 were adopted in estimating the sample size. The study administered two set of structured questionnaires; one to Estate Surveyor and Valuer firms to collect data on rental values (2008-2019) and second questionnaires were administered on the respondents to collect information on condition of environmental attributes using the census and simple random sampling method technique. Hedoni regression was employed to analyse the data. Environmental attributes were scored based on current condition an ratio scale was used alongside the average property value. The result revealed that neighbourhood attributes contributed between 60.3% -71.6%, natural attributes contributed between 60.3%-71.7% while structural attributes contributed between 66.8%-75.1% in determining the property values across the selected areas. The result of mixed regression analyses further revealed that environmental attributes contributed about 70.1% in determining the valu of property in the selected areas. Environmental attributes such as natural and man-made water supply, road, quality wall-structure and floor, landscape, bathroom and streetlight contributed significantly in the determination of propert values across the study areas. The study therefore concludes that the value of environmental amenity should b captured in the price of residential properties close to it. It is recommended that every stakeholders in the built environmental advocate for quality and even distribution of common environmental facilities that are key t development of property market in Nigeria.