DETERMINATION OF FACTORS INFLUENCING RENTAL VALUES OF RESIDENTIAL PROPERTY IN OSOGBO, NIGERIA
Keywords:
Residential Property, Factors Influencing, Rental Value, Determination, InvestmentsAbstract
The study examined the factors influencing rental value of properties in Osogbo, in providing strategies with a view to provide information that could guide investors on the development of residential properties that will enhance rental value in the study area. To achieve this, the study identified and examined the types of residential properties in Osogbo, and determined the factors affecting rental value in residential areas in Osogbo, Osun state, Nigeria. In order to perform the study, Estate Surveying and Valuation firms in Osogbo, Nigeria, provided primary data. 29 Estate Surveying and Valuation firms were found in Osogbo, the types of residential properties in Osogbo, and the factors influencing rental value in residential areas in Osogbo. The study findings regarding the types of residential properties revealed that brazillian, 2-bedroom, and 3-bedroom apartments were highly abundant in the market, with one room self-contained and room and parlour self-contained available in moderate quantity. Mansions and duplexes, on the other hand, were scarce. Brazillian apartments were concentrated in high and medium residential densities, while one room self-contained and room and parlour self-contained were mainly found in medium residential areas. Two-bedroom apartments were prevalent in high and medium-density regions, and 3- and 4-bedroom apartments were more common in medium and low-density areas, while mansions and duplexes were predominantly located in low-density zones. The results regarding the factors affecting rental value in residential area revealed that the physical characteristics of buildings had the most significant influence on rental values of residential properties, followed by economic, neighborhood, and trigger factors. Therefore, improving the physical outlook of buildings could be crucial in enhancing the rental values of residential properties in the study area. Physical characteristics had the most significant impact on rental values, followed by economic, neighborhood, and trigger factors. Improving building aesthetics can enhance rental values, guiding policymakers and stakeholders in the Osogbo property market.