AN ASSESSMENT OF THE IMPACT OF ENVIRONMENTAL QUALITY ON RENTAL VENUE OF RESIDENTIAL PROPERTIES IN NASARAWA
ABSTRACT
The aim of this project is to assess the impact of environmental qualities on rental value of residential properties in Nasarawa. The specific objectives are as followings: identify the various environmental problems common in residential neighbourhood in Nasarawa, evaluate the relationship between environmental qualities and rental value of residential property and ascertain residents rating of environmental qualities in Nasarawa, examine the impact of environmental qualities on rental value of residential property. The research method used was survey The sampling techniques adopted for this study is the random sampling techniques, the techniques give every member of the population the opportunity to be selected without any form of preferential treatment. A total of one hundred (100) copies of questionnaires were administered, and out of these, seventy five (75) copies of the questionnaires were correctly filled and returned. The researcher make use of statistical tools such as tables, percentage and descriptive methods to presents and analyzed the data gathered from the field survey which was considered appropriate for the research. The study revealed that the problems common in residential neighbourhood in Nasarawa is inadequate basic services such portable water, constant electricity supply, good and affordable health care etc, substandard housing this is evident in the presence of squatter and slum settlement, irregular and informal settlement, finally poverty and social exclusion contributes tremendously to the environmental problems. Finally, the study revealed that environmental qualities affects rental value of residential property in Nasarawa. The researcher recommend that the government should make concerted effort in providing the basic social amenities in Nasarawa to reduce the environmental problems encountered and the development control should ensure that development control laws are fully enforced to avert the problem squatter, slum, irregular and informal settlement.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Environmental qualities are largely responsible for neighbourhood attributes on real estate values. Man’s attitude towards the surrounding environment is not neutral because human search for location that deliver a high quality of life (Mchi, 2013). Those expectations particularly concern man’s daily surrounding including residential area or recreation ground. The qualities of that environment largely affect the decision made on real estate market value.
Environmental qualities are numerous and its’ effect are in various ways, such as physical and socio-economic obsolescence and environmental problem and a host of others have their consequence on human. The problem of environmental and efforts directly towards their alleviation command global attention because of the increasing proportion of the world population being affected by such issues whether or not; we have face an environmental crisis “It is the subject of much debate those days some argue that our environmental problem are neither unprecedented nor over-whelming. The role of environment in assimilating waste products and providing life-support amenities will become increasingly important. Protection and conservation of key natural systems and important ecological functions will essentially, not only in terms of their value and in terms of recreation but also because these systems and functions may provide invaluable support and protection for economic activity and human welfare. But little is known about the role of environment in recent years there is growing recognition that efficient and sustainable management of environmental resources is indeed critical to economic development (VanKamp, 2003).
Neighbourhood, on the other hand is important due to its spatial linkage to the housing purchase and real estate in general. Once settled in a location, one is subject to the externalities that neighbourhood effects impose. Neighbourhoods are geographic units within which certain social relationships exist, although the intensity of these relationships and their importance in the lives of residents vary tremendously. Initially the neighbourhood unit was both a social and planning concept. On one hand, it had to provide convenience and comfort and direct, face-to-face contact in order to restore some sense of community that has been disturbed or destroyed by the specialization and segmentation of urban life. On the other hand, it was to constitute a special sub-part of a larger, more complex totality.
Environmental qualities matter to human life as they play role in assimilating waste products and providing life support amenities such as forests provide fresh air, water catchments Areas and prevention of soil erosion (Turner 1995). Despite the essential role played by environment resources in developing countries little is known about the economic development (Turner, 1995). Furthermore little is known about the impacts of markets forces and policy interventions on environmental management and environmental effects of development and programmes. Research in all these areas is proceeding, but progress remains slow given the complexity of the problems and our failure to address them adequately in the past (Turner, 1995). Development of industries and increased human population has greatly led to environment deterioration, which in turn affects the quality and property value of settlements (Turner, 1995). The Nigeria population is growing at the rate of approximately eight percent per annum, it is estimated that about 70 percent of populations live in poor, unplanned settlements (http:web.mit.edu/ urbanupgrading) Until mid- 1990 the overall urban environment had deteriorated to the extent that less than 5 percent of solid and liquid waste was collected (Nkya 2001) Lack of knowledge of the people towards the importance of environmental quality, has lead to deterioration of the environment to such an extent that in some it has decreased property values and rents of houses.
According to Norman (1982), physical attributes and locational influences can be described as “Fundamental factors” of the property because all users of such property get utility or disutility from these fundamental factors over their expected tenure. While physical attributes include building area, type of structure and all that is attached thereof, locational influences are off-site neighbourhood attributes like healthcare facilities, parks, schools etc. Therefore real estate value will be locational dependent due to the attributes with respect to specific desirable services. Since locational influences on the value of residential property can come up from a number of sources such as accessibility to shopping centre, air quality, drainage system availability, pollution, noise, security, and availability of refuse disposal facilities etc. This research work examined the effect of environmental quality and neighbourhood attributes on real estate value.
1.2. STATEMENT OF THE PROBLEM
Most Nigeria‘s major cities have been experiencing rapid urbanization and rapid development due to urban-urban or rural urban migration which have resulted in the failure of urban infrastructure and services have failed to keep pace with this growth. In addition to rising urban poverty, there is an increased urban environmental problems. These challenges are poor solid waste management, uncontrolled housing and neighbourhood development, flooding, traffic congestion, poor state of the urban physical environment and rising crime rates have been documented (Ugwuorah, 2002; Mchi, 1997). Obinna, Owei and Mark (2010) have also noted the deplorable housing, inadequate space, and absence of basic services in the informal settlements of the city. This state of affairs triggered the desire to carry out an assessment of the impact of environmental quality on rental value of residential property in Nasarawa.
1.3 AIM AND OBJECTIVES OF THE STUDY
The aim of this project is to assess the impact of environmental quality on rental value of residential property in Nasarawa
The specific objectives are as followings:
i. To identify the various environmental problems common in residential neighbourhood in Nasarawa
ii. To evaluate the relationship between neighbourhood attributes and residential property values.
iii. To ascertain residents rating of environmental qualities in Nasarawa
iv. To examine the impact of environmental qualities on rental value of residential property in the study area
1.4 RESEARCH QUESTIONS
i. What are the various environmental problems common in residential neighbourhood in Nasarawa?
ii. What are the relationship between neighbourhood attributes and residential property value?
iii. How do the residents rate environmental qualities in Nasarawa?
iv. What are the impacts of environmental qualities on rental value of residential property in the study area?
1.5 HYPOTHESIS
H0: Environmental qualities have no significant impact on rental value of residential property in Nasarawa
H1: Environmental qualities have significant effect on rental value of residential property in Nasarawa
1.6 SIGNIFICANCE OF THE STUDY
This study assessed the impact of environmental quality on rental value of residential property. The management of the environments and neighbourhood is the collective responsibilities of both the government at all levels and the property owners, thus this study would be utilized by the government at both federal, state and local government through their various ministries or agencies such as the ministry of environment, education, health and information as it will impact on them the relevance of maintaining a good and quality environments. The study will be also be beneficial to these ministries in the area of policy formulation and formulating laws that will promote good environment and neighbourhood which will be beneficial to human health and protect the environment.
The citizenry, estate valuers and managers and professionals in real estate sector will also benefit greatly from this study, as the study will reveal how a person’s carefree attitude about the environment can be costly not only to himself but to others. Non-governmental organization in the areas of health and environment will also benefit from the result of this study. This study will guide them in the areas production and distribution of educational materials to the public to enlighten them about the effects of environmental quality with regards to its impact on property rental value.
The information will go along way in helping other research in the field as it will contribute to available literatures on environmental quality.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
The study is delimited to the assessment of the impact of environmental quality on rental value of residential property. The study intends to investigate the environmental quality, and the relationship between neighbourhood quality and residential property values. The geographical scope of the study is Nasarawa town, Nasarawa state.
1.8 OPERATIONAL DEFINITION OF TERMS
Environment: The sum total of all surroundings of a living organism, including natural forces and other living things, which provide conditions for development and growth as well as of danger and damage.
Environmental Quality: Environmental quality is a set of properties and characteristics of the environment, either generalized or local, as they impinge on human beings and other organisms. It is a measure of the condition of an environment relative to the requirements of one or more species, any human need or purpose.
Neighbourhood: A neighbourhood is a geographically localised community within a larger city, town, suburb or rural area. Neighbourhoods are often social communities with considerable face-to-face interaction among members.
Attributes: A characteristic or feature of a product that is thought to appeal to customers.
Property Value: property value according to Millington (2017) is the money obtainable from a person willing and able to purchase property when it is offered for sale by a willing seller, allowing for reasonable time for negotiation and with the full knowledge of the nature and uses which the property is capable of being put.
1.9 THE STUDY AREA
Nasarawa Emirate in Nasarawa State is located in the Central region of Nigeria. It is flanked by Keffi and the Federal Capital to the North. To the South, it is bounded by Benue River and to the west; it bordered the present Gadabuka and Toto Local government area which are of course, part of the Emirate. To the East, it is bordered by Doma, Lafia and Keana Local Government Areas all of Nasarawa State.
Physical Characteristics: The major things considered under physical characteristics of Nasarawa are, geographical location, temperature, rainfall, geology, wind, vegetation, humidity, soil.
Temperature: The temperatures are generally high during the day, particularly between the months of March and April. The main monthly temperatures in the state range between 200C and 340C with the hottest months being March/April and the coolest months being December/January.
Rainfall: The study area experience dry season without or little’s rainfall from November to March of about 95mm, which is wet season is from April to October of about 1.30mm,
Geology: From the Jos Plateau, this comprises of basement complex metamorphic rocks, granite and basalt of two or more ages. The basement complex is covered by shadow soil.
Wind: Nasarawa local government is determined by the seasonal movement on inter-tropical convergence zone [ITCZ], which represents the moving frontier between the moist Atlantic air from the south and the dry air from the north. In the dry season from November till March the north east wind are dominant. For the remaining of the year, the south-western winds are prevailing. Generally, the wind velocity is relatively low.
Vegetation: Nasarawa is situated in the Benue valley between the Benue river and Jos Plateau. This area lies within the part of southern guinea savannah. The vegetation of Nasarawa has, to a large extent resulted from extensive agricultural use of the land, the predominant vegetation type is partly savannah which is characterized by a discontinuous canopy, shrubs and grasses many areas are affected by man through bush burning during the dry season. Among the common trees are oil bean trees, locust bean free and isoberline trees.
Relative Humidity: The relative humidity is the measurement of deepness of the atmosphere which varies from place to place and different time of the day. The level of humidity in Nasarawa state in January is quite less that 40% which rises as from February to July to about 88%. By April when the steady rain commences it will be about 75% by August when the inter-tropical discontinuity is at it northern part, most position of the entire state will experience tropical marine wind and continues till December.
Soil: The major soil units of Nasarawa belong to the category of oxisols or tropical ferruginous soils. The soils are derived mainly from the basement complex and old sedimentary rocks. Lateritic crust occurs in extensive areas on the plains while hydro orphic soils (limbic incept sols) occur along the flood plains of major rivers (Nyangba, 1995).
Socio-Economic Characteristics: Nasarawa main economic activity is agriculture; cash crop, such as yam, cassava and egusi (melon). Production of minerals such as salt is also another main economic activity of people in the state; Nasarawa produces a large proportion of the salt consumed in the country.
No comments:
Post a Comment