THE IMPACT OF CRIME ON RESIDENTIAL PROPERTY VALUE A CASE STUDY OF ABEOKUTA

 

THE IMPACT OF CRIME ON RESIDENTIAL PROPERTY VALUE

A CASE STUDY OF ABEOKUTA

 

ABSTRACT

 

This study examines the impact of Abuja railway stations on residential and commercial property values.To achieve the aim, the researcher seek to identify the types of crime common in the study area, assess the factors that encourage crime and analyze the relationship between crime rate and residential property value in Abeokuta. The research adopted the survey design which offers the opportunity to gather information through the use of questionnaires, personal interview and observation. Total of 100 copies of structured questionnaire was administered to the respondents comprising of residents of Abeokuta and professionals in real estate. Data were presented and analysed using simple statistical tools. The study revealed that the operation of the railway station did not have any significant impact on the property value.This means that increase in property rental value observed is not attributed to the operation of the railway station.Finally, it is recommended that the government should increase the operational capacity of the railways station, beyond its present level and to also increase the numbers of transits per day as this will encourage more patronage thereby impacting positively on property value. Also the planning authority should ensure adequate planning provisions to accommodate further development of commercial and residential properties within and around the network node.

 

 

CHAPTER ONE

INTRODUCTION

1.1       Background of the study

Most urban cities of the world have experienced a remarkable rapid urban growth resulting from industrialization and technological advancement. All over the world threats from terrorism, drug cartel and organized crime have been increasing at an alarming rate (Mishral, 2013). In Nigeria, industrialization and unplanned urbanization characterized the economic and social growth processes. The spatial expression of these realities and the consequence of simultaneous urbanization with the uncontrolled growth pattern in the most of the urban cities are manifested in diverse urban problems such as urban decay where visible forms of drugs use anti–social behaviorand criminal damage to public and private properties are the order of the day (Giblion, 2004).

 

Crime and insecurity has been established to negatively influence residential property value, individual’s mental, physical and social activities and also the vitality of residential neighbourhood (De Biasi, 2017). According to Ahmed (2012), crime occurrence in Nigerian cities have shifted from simple crime such as stealing, burglary, rape etc to more sophisticated crime of terrorism, kidnapping, child trafficking etc. The environmental, social health and economic ramifications of this situation in our cities have tremendous impact on urban economy and security (Ogboi 2009).

 

According to the 1999 Federal Republic of Nigerian constitution, ‘security and welfare of people stands as one of the main purpose of the government existence’ however, this constitutional responsibility have long failed in placing a safe and secured environment for properties, lives, individual daily operations and economic events except for those in government’s high ranking positions who are usually guided by all sort of security (Okonkwo, et al, 2015). More so, these disquieting insecurity levels have increased the terrorism and crime rate in different states of the country with Abeokuta not excluded. The crime rate across the country keep breeding destruction of properties and live as well as increasing fear of insecurity. This then leaves revolting consequences for people, business and economic growth as activities such as foreign direct invest and international organisations wishing to invest in the country’s real estate are being discouraged.

 

On a general note real estate owners or users are often prone to diverse form of insecurity ranging from natural disaster like earthquake; hurricane sandy to that of man-made insecurity and so on, which constitute mainly properties and violent crime (Olajide and Mohg Lizam, 2017). The recent crime profile of Abeokuta, the study area, has nexus with the urbanization and rural urban migration effects manifesting in it. However, incidence of crime in Abeokuta seems to be higher in the poorer neighborhoods where higher population density, deteriorated living condition and unemployment are rife. The inadequate policing in the areas makes the victims soft targets for criminal tendencies. There are also incidents of crime such as armed robbery, pick pocketing, and vandalism in the posh residential areas and commercial precincts that raise poser about the livability of the study area, and the ability of it to attract investments that rely on adequate security for survival. It is against this background that this study seek to examine the impact of crime on residential property value in Abeokuta,

 

 

1.2       Statement of problems

The problem of urban crime has typically been viewed as a cost to society in terms of bodily injury, property loss and police protection costs.  The impact of urban crime on the total utility derived from urban living has become a topic of increasing concern as millions of naira are invested to  increase the levels of residential home security systems which ranges from simple to sophisticated security system such as trained dogs, thermal cameras, high/electric fencing, vigilantes, fire/back to base alarm systems, panic buttons, surveillance equipment and wire, fire system, home automation, temperature, spikes floor and water sensors, CCTV monitors, video recorders, 24hours security guards, and any type of anti-intruder perimeter control systems (Radetskiy, et al 2015). This however has not been fully employed in Nigeria owning to procurement cost, difficulty in installation or use as well as the unplanned nature of most housing environments. Ajibola, et al (2011) noted the inefficient security problem within the length and breathe of the country which has resulted into numerous crime acts, loss of lives and properties. This has made some residential property owners and tenants to vacate their comfort zone in search for a secured environment which are less comfortable. More so, it was observed that some fully furnished apartment across states including Abeokuta, Ogun state, Nigeria are scarcely occupied owning to the rate of crime which then affects developer’s profit property value in general. These problems have necessitated this research to examine the impact of crime on residential property value in Abeokuta.

 

1.3       Aim and objectives

The aim of this project is to examine the impact of crime on residential  property value, a case study of Abeokuta.

The following specific objectives will be pursued:

1.      To identify the types of crime common in the study area

2.      To assess the factors that encourage crime in the study area

3.      To analyze the relationship between crime rate and residential property rental value in Abeokuta.

 

1.4        Research Questions

In attempt to achievement the objectives of the study, the following research questions will serve as a guide:

i.                    What are the types of crime common in the study area?

ii.                  What are the factors that encourage crime in the study area?

iii.                What is the relationship between crime rate and residential property rental value in Abeokuta?

 

1.5       Justification of the study

The outcome of this study will educate the general public the impact of crime on residential properties as the study will proffer solution to the problem of insecurity; improve lives and property and development of infrastructures to avoid low property rental value in the study area

This will also sensitize the policy makers on the need to beef up security in order to safeguard life and property in the   study area. 

This research will also serve as a resource base to other scholars, estate surveyors and valuer, property developers, investors and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

 

1.6       Scope of the study

The scope of this study is limited to the impact of crime on residential property value. The study will be geographically limited to Abeokuta the state capital of Ogun state and will be further to only residential properties in the categories of tenement building, self contains, block of flats, bungalows and duplex.

 

1.7       Definition of Terms

Crime: A crime is an unlawful act punishable by a state or other authority. One proposed definition is that a crime or offence (or criminal offence) is an act harmful not only to some individual but also to a community, society or the state ("a public wrong").

Residential Property: it is a building that is used or suitable for dwelling purpose. They are dwelling house such as bungalows, duplex, detached houses, semi-detached houses, etc (Ogbodo, 2012).

Property: This is the embodiment of tangible ownership right or bundles of right in real estate. It could also be described as a concept of right which can be held separately (Babatunde, 2003)

Rental Value: This is the worth or value of property in an open market. It is also the value arising out of the lease or renting out of a property on a periodic basis usually yearly (Omole, 2001)

Residential: this can be defined as block of flats or bungalow duplex e.t.c in an area of a town suitable for living and consisting of houses rather than factories or office.

1.8       The Study Area

Abeokuta, Ogun State is the biggest city in the state, as well as its capital. It covers 879 square kilometres of land mass and has the population of almost half a million people. Abeokuta was founded in 1830 after the intertribal wars ravaged refugees in Egba forest from their original homes between 1817 and 1830. The name of the town "ABEOKUTA" was derived from the protection which the fleeing settlers sought under the Olumo Rock, now a tourist center in the town. Abeokuta means 'the refugees under a rock', signifying the protection which the Olumo Rock offered the refugees from possible attacks. The first and major of these series of internecine wars was the one which broke out as a result of an incident at Apomu Market, now in the Irewolede Local Government area of Osun State. In 1821, an Owu man who sold alligator peppers was at Apomu Market selling his wares. He laid them out in piles containing 200 peppers each. An Ijebu woman came to the market and purchased a pile. She did not verify on the spot the correctness of the number of peppers in the pile she selected, but found it convenient to do counting on reaching home. She claimed to find only 199, which meant that one was missing.

The Ijebu woman went back to the market to accost the Owu man over the one pepper by which the portion she selected was less, and demanded restitution of the missing one. But the Owu man objected, maintaining that he was sure of his own count. The argument over this single pepper developed into an open quarrell between the two of them. Later, it blew out into a fracas in which people of Owu and Ijebu clans in the market took sides with their kith and kin. Sectional sentiments soon became whipped up into open confrontation in which a life was lost and several people were injured.

Each side went home to narrate to their Oba, chiefs and townsmen the events of the day. As would be expected, each group took umbrage over what it considered to be a raw deal from the opposing camp. Within a matter of days, the fight over a single alligator pepper had resulted into a total war in which the Owu and Ijebu peoples threw caution to the winds and restored to open arms. Before this incident, the people of Ife had suffered defeats in the hands of the Owu people, and the Ijebu had similarly been routed by the Owu in a war fought over the slave trading. Now, both the Ife and Ijebu saw the opportunity to settle scores with the Owu by joining forces to face the Owu. Even the remnants of the Oyo forces, just returned from their mission to repel a Fulani invasion, and who were by then mere lay-about, teamed up with Ife and Ijebu forces. The combined attack of the Ife-Ijebu-Oyo coalition forced the Owu homeland to fall after a long siege, and the events following this catastrophe gave birth to the founding of Abeokuta a few years after.

The fall of the Owu homeland was quickly followed by the fall of some other Egba towns, each being sacked in succession by the alliance of the Ife-Ijebu-Oyo forces. The Egba towns which had folded their arms while the Owu people fought alone, now became victims of the ravening wolves represented by these rallies. The only pity of it was that among the first to fall was Ikija. Ikija was attacked because its people stood by the Owu people in the war of 'Alligator Pepper'. Before long, many Egba towns also fell and all the survivors eventually sought refuge in Abeokuta after a few years, and thus made Abeokuta their permanent place of sojourn.

Their decision to leave Ibadan for Abeokuta was nowever informed by the hostility of the Oyo, Ife and Ijebu, with whom they shared sojourn in Ibadan. Lamodi, a warrior of note, was credited with the initiative for the migration to Abeokuta, although he himself never saw the Promised Land because he died on the way. He was at the time the Balogun of the Egba people. Sodeke, who was then the Seriki of the Egba, took over and led the first wave of immigration to Abeokuta in 1830. Bringing up the rear of the migrants to Abeokuta were the Owu people in about the year 1834. Some others also came later.

The site they choose for Abeokuta was originally the farmland of an Itoko farmer whose name was Adagba. Adagba had no choice but to receive the Egba refugees with both hands and the credit he got was that Abeokuta became known by another name - 'OKO ADAGBA', meaning Adagba's Farmstead. On setting in Abeokuta, each community continued its main occupation of farming, cultivating mainly food crops and cash crops, notably cotton, palm-trees, and kola-nuts. A few did pretty trading and some practiced itinerant merchandising. There were also craftsmen, hunters, drummers, weavers and dryers; some practiced traditional healing, mingling it with some form of divination. They were very religious and each adhered to a belief in one God or another. They specialized in a genre of oral traditional poetry known as Ege which is both musical and philosophical in content and forms.

The first few years immediately following the settling in Abeokuta were fraught with difficulties - social, political and economic. But for the fact that they lived simple lives, they would have found the problems overwhelming. The problems of each group findings and selecting appropriate land to farm was enough to daunt them. And the quick succession of the waves of settlers posed problems with extra dimensions. The new pottage represented by the many group of settlers needed time to simmer and mellow down to attain acceptable taste. Then there were the need for food supply. Being new settlers, they needed a year or two to be able to plant enough food to feed themselves. So it was largely a question of scrounging for food on in the first two years by a people who had escaped from unsettling ravages of war. 

Between 1830 and the turn of the century, the settlers in Abeokuta were forced into fighting several wars. In these wars, they creditably proved their mettle. In 1832, the Ijebu Remo people provoked the new settlers into taking arms against several Ijebu Remo towns in a war called - Owiwi war. In 1834, the Ibadan people also challenged them to a war which resulted in the defeat of the Ibadan army in what was known as the Battle of Arakanga. In 1842, the settlers took the initiative of a war with the Ota people in order to ensure free movement through Ota territory each time they needed to get to Lagos to buy firearms. This led to another war in 1844 when they attacked Ado for assisting the Ota people two years before. The same year, the Dahomeans, under King Gezo, waged war against Abeokuta but were repulsed. The Dahomey army repeated the invasion in 1851 and suffered a similar defeat. In 1849, Abeokuta attacked Ibarapa for waylaying the Egba in their territory. Among other wars fought by Abeokuta were the Ijebu-Ere War in 1851, and the Ijaye War of 1860-1862, and the Makun War of 1862-1864, as well as a few others. In most of these encounters, they emerged victorious - although they suffered their own reverses in some as well. Among Egba war leaders were Sodeke, Ogunbona, Apati, Seriki Akoodu, Ogundipe Alatise, Sokenu, Basorun Somoye, Olufakun, Agbo, Lumloye, Iyalode Tinubu, Majekodunmi, and a host of others.