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Land Value Determinants and Rental Values of Office Spaces in lkeja, Nigeria

Oni, A. O. and Ajayi, C.A. (2011) Land Value Determinants and Rental Values of Office Spaces in lkeja, Nigeria. Mediterranean Journal of Social Sciences, 2 (2). pp. 257-277. ISSN 2039-9340

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Abstract

This study was carried out to examine the contributions of land value determinants to variability in rental values of offices in lkeja, Nigeria. In doing so, road network which has not received much consideration in studies on property value determinants, were decomposed into its explanatory variables of quality, length, connectivity, and density, in addition to other variables like location, demand, accessibility, and supply of commercial properties in the study area. Multiple regression analysis of the data at 95% confidence level showed that accessibility (P-value=0.0045), demand (Pvalue= 0.0022), supply (P-value=0.0115) ANOVA indicated 0.0423 proving that road network have significant effect on rental value of office spaces in the study area. Similarly, step-wise regression analysis returned four variables accessibility (0.0011) , demand (0.0004), location (0.0413) and supply (0.0028) as the variables that actually greatly affect the rental values. The study has reinforced the importance of accessibility to development and investors wishing to embark on real estate development should be conversant with the level of accessibility of the arterial roads along which such development will locate. Decision on the location of such development project should be based on a pragmatic approach such that selected locations would bring the highest return that is adequate and sufficient to compensate investors

Item Type: Article
Uncontrolled Keywords: arterial roads, commercial property, property value, road network, valuation, variability
Subjects: H Social Sciences > HD Industries. Land use. Labor
T Technology > TA Engineering (General). Civil engineering (General)
T Technology > TH Building construction
Divisions: Faculty of Engineering, Science and Mathematics > School of Civil Engineering and the Environment
Depositing User: Mr Solomon Bayoko
Date Deposited: 28 Mar 2014 20:43
Last Modified: 28 Mar 2014 20:43
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/2300

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