Land Use Conversion and Rental Value Regime in an Emerging City. The Awareness, Attension and Action

Abstract

The recent trend in residential land use commercialization in Osogbo the capital of osun state, Nigeria has been described as alarming. It is against this background that this paper assessed the influence of the continuous but unguided residential land use conversions on the rental values of residential properties along Gbongan road, area hitherto characterized with residential development in Osogbo metropolis with the aim of ascertaining the level of awareness, attention and the actions of both government and private property owners in unravelling the effect of use conversions on rental values. In a bid to achieve the aim of the study, 205 questionnaires were administered on property owners or tenants and estate surveyors and valuers, only 181 questionnaires representing 91% were correctly filled and returned for analysis. Data collected were analysed using both descriptive and inferential statistical techniques. The study discovered that converted buildings command higher annual average rental values in the study area. Converted buildings to either to shops or offices space is mostly predominant in the study area. Converted properties with the highest rental value trend shows the fastest investment fund recoupment potentials but deplete the available residential housing stock. This has created an unenviable property rental regime in the city. It is on these findings that the study therefore recommends among other things the introduction of property identification numbers for all properties in the city of Osogbo, effective and efficient land use conversion and management mechanism as well as incentive for residential property developers.