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Building Material Prices and the Rental Values of Residential Properties in Ede, Nigeria

Author

Listed:
  • D. I. Dabara
  • O. J. Omotehinshe
  • J. O. Soladoye
  • I. N. Uwaezuoke

Abstract

Purpose: The study examined the relationship between building material prices and the rental values of residential properties in Ede, Nigeria from 1997 to 2016.Design/Methods followed/Approach: The study was carried out by means of questionnaire survey. The population for the study consisted of Estate Surveyors and Valuers (ESV), Landlords, Builders/building contractors and building material suppliers/sellers in Ede. The areas covered for this study includes: Oke-gada, Ededimeji, Okeresi, Agbale and country home in Ede. A total of three hundred and forty five (345) questionnaires were administered on the respective respondents that included 300 landlords, 24 builder material suppliers, 14 builders/building contractors, 7 Estate Surveyors and Valuers. The total questionnaire retrieved were 288 representing 83.5% response rate. A multiple regression model was used to determine the interrelationships between the dependent variable and the predictors or independent variables.Findings: The study found that there was a steady and consistent increase in both building material prices and rental values of residential properties from 1997 to 2016 in the study area. The study further showed that there was a strong significant relationship of 0.957 between building material prices and the rental values of residential properties in the study area with prices of roofing sheet being the strongest rental predictor (0.002) followed by granite (0.022), cement (0.38) and then sharp sand (0.47).Practical Implication: The study provided relevant information that can guide real estate investors, builders, real estate professionals and other stakeholders in the real estate sector regarding the influence of building material prices on the rental values of residential properties in Nigeria.Originality/Value: The problem of consistent increase of rent on residential properties in Ede over the last few years has necessitated this investigation which provided an insight into the factors influencing such high rise in rent. This is the first study that addresses this issue in Ede, Nigeria.

Suggested Citation

  • D. I. Dabara & O. J. Omotehinshe & J. O. Soladoye & I. N. Uwaezuoke, 2018. "Building Material Prices and the Rental Values of Residential Properties in Ede, Nigeria," AfRES afres2018_128, African Real Estate Society (AfRES).
    • Handle: RePEc:afr:wpaper:afres2018_128
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    More about this item

    Keywords

    Construction; Rent; Residential; Risk; Value;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    NEP fields

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