IMPACT OF COMMUNITY DEVELOPMENT ON COMMERCIAL PROPERTY

IMPACT OF COMMUNITY DEVELOPMENT ON COMMERCIAL PROPERTY

Abstract

Road construction is a socioeconomic activity in most urban centers, it is long piece of ground specially prepared with a hard level surface for people, vehicles to travel upon, a greater part of the nations resources. Since 1941, a lot have been spent in road construction, maintenance, expansion and rehabilitation spread through the nations which is one of the factors affecting property value, for this reason the research is aimed at examining the impact of road construction, expansion and rehabilitation on property value with a particular interested in Osogbo town, in Osun state.  Literatures on the topic were reviewed with proper citation. 100 questionnaires were administered. The data obtained were analyzed using tables and description. It was found that there was notable increase in property value after road construction and it has impacted the community positively, government have been encouraged to levy betterment tax on occupiers / owners of the commercial properties. It was recommended that road should be constructed to other nearby town so as to improve property value and foster business relationship in the area.

CHAPTER ONE

1.0       INTRODUCTION

Community development has been one of the most significant social forces in the process of planned change during the last three decades. In the past change has occurred without plans or guidance, but today the increasing trend towards planned change enabled large segments of people to participate in the planning and change creating programs which affect their lives. Community development as an instrument of change has become a controversial topic and one hopes this will change the attitudes of policy makers.

The United Nations defines community development as “a process where community members come together to take collective action and generate solutions to common problems.” (UN, 2014). It is a broad concept, applied to the practices of civic leaders, activists, involved citizens, and professionals to improve various aspects of communities, typically aiming to build stronger and more resilient local communities.

Community development is also understood as a professional discipline, and is defined by the International Association for Community Development as “a practice-based profession and an academic discipline that promotes participative democracy, sustainable development, rights, economic opportunity, equality and social justice, through the organisation, education and empowerment of people within their communities, whether these be of locality, identity or interest, in urban and rural settings (Alison and Marilyn, 2011).

Community development seeks to empower individuals and groups of people with the skills they need to effect change within their communities. These skills are often created through the formation of social groups working for a common agenda. Community developers must understand both how to work with individuals and how to affect communities’ positions within the context of larger social institutions.

Community development has gained universal recognition in the last three decades as a substantial force for inducing planned change. Rapid technological advances have resulted in a series of inescapable social realities, and community development can help adapt to these new realities. Community development provides the possibility of altering by democratic means at times antihuman directions of technology, urbanization towards more human ends and property development.

Community development in forms of road construction, electricity, pipe born water, urban housing is socio–economic activity which brings opportunities as a result of improvement in the general activities of people which facilitate business activities and enhances the value of commercial properties.

Commercial properties are important in physical and economic development of towns and cities all over the world. Commercial property and land values tend to increase in areas with expanding community developments /  infrastructure, and increase less rapidly in areas without such improvements, rapid and continued rise in housing and prices are expected  in cities with community development, rapid economic and population growth (Gold Berg, 2017) man, nations, town regions and the world itself would be severely limited in development without community development, which is a key factor for physical and economic growth (Oyesiku, 2012).

Community development usually has three major elements: (a) community members’ well-being or welfare involving both material sufficiency and non-economic aspects of living such as health and education; (b) resource development, involving increased production and efficiency; and (c) organizational development, involving the maintenance and creation of social and economic structures through which members of the community may channel their energies for the betterment of community living (Baker, 1989:48). The ultimate goal of community development is therefore, to develop members’ capabilities and potentials to affect their well-being and quality of life through maximizing resources utilization to benefit them socially and economically. This could only be achieved through effective management of community development programmes as well as having highly committed and well-trained professionals not only in the technical disciplines but also in the community capacity building. The paper focuses on community capacity building as a community development process.

Similarly, commercial activities like retail, wholesale business, has attracted consumers and ancillary service providers. This partly caused increase in demand for commercial space and its effects on commercial property values within a community. There have been increase in rental values of commercial properties within a developed community., therefore this study seeks to examine the impact of community development on commercial property.  

1.       Statement of Problem

Poor road network is one of the factors affecting property values. It makes a village town or state to be backward in economic growth and development. It is the socioeconomic impact of the road construction on property values that necessitate this study.  What are the impact of road construction, expantsion and rehabilitation on property value?

1. Aim and Objectives

The aim of this study is to examine the impact of road construction, expansion and rehabilitation on property rental values in Osogbo. In other to achieve the above aim, the following objective shall be pursued.

1. To examine the state of the available road network in the study area.
2. To asses the supply of commercial property in the study area.
3. To examine the rental value of commercial property in the study area before and after road construction.
4. To determine the extent to which road construction has affected property values.
5. To recommend the way forward.

1. Research Question
2. What is the nature of available road network in the study area?
3. What is the growth rate of supply of commercial property in the study area?
4. What are the values of property from 2010 – 2015?
5. To what extent has road construction has affected property values?
6. What way can road network be increase?
   1. Significance of the Study

This study focus on the impact of road construction on commercial property rental value. Accessibility is the most important element that enhance property values. This research will encourage government to provide good road network as it has positive impact on commercial property rental values.

The greater the accessibility of a location the comparative advantage to commercial property users, and the greater the comparative advantages to the demand for more property in the study area and finally this research will also serve as a requirement for the award of degree in course of study.

1. Scope and Limitations of the Study

This research is confined to the study of impact of road construction, expansion and rehabilitation on property value in Osogbo, the research covers property value found within Osogbo metropolis.

1.6       Historical Background of the Study Area 

The early history of Osogbo is essentially the legendary account of the spirit-world; it is the history of the early people whom we call the spirits and fairies. This is in line with Yoruba traditions, which use mythical stories to explain the origins of the ruling families of an early Yoruba state.

Osogbo according to Yoruba oral history had been founded as early as Oduduwa period. Oso-igbo, the goddess of Osun River, was the Queen and original founder of Osogbo. She was credited with many important achievements, which helped to establish the settlement.

Osogbo the capital of Osun lies on coordinates 7°46′ North 4°34′East with an area of 47kmsq. According to the 2006 Population and Housing Commission Census, the city has a population of 156,694 people. Osogbo shares boundary with Ikirun, Ilesa, Ede, Egbedore and Iragbiji and is easily accessible from any part of the state because of it’s central nature. It is about 48km from Ife, 32km from Ilesa, 46km from Iwo, 48km from Ikire and 46km from Ila-Orangun.

Osogbo is a commercial and industrial centre. This started in 1907, when the British Cotton Growing Association sited an industry for growing and ginning of cotton. The Nigerian Tobacco Company (NTC) built its first factory in Osogbo. In this same year, a major turning point for the city which helped in its industrial and commercial development occurred.  The railway tracks were constructed linking it to other parts of Northern Nigeria.  This attracted people from far and near.

The Ataoja of Osogbo is the traditional title of the King and he is the political and spiritual heads of Obas and Chiefs in Osogbo and Olorunda Local Government Areas.

Osogbo is famous for the annual Osun Osogbo Festival which attracts tourists from different part of the world.

1.7       Definition of Key Terms

1. Road: The Concise Oxford Dictionary defined road as specially prepared truck between places for the use of pedestrian, rivers and vehicles. It could also be a long narrow piece of ground especially prepared with a hard level surface for people, vehicles etc.
2. Property: Is a legal concept encompassing all the interests, right and benefit related to ownership. Properties consist of the right of ownership which entitle the owner to a specific interest or interest in what is a physical entity and its ownership Olusegun (2003).
3. Value: As the worth of something in terms of money or other goods for which it can be exchanged or quality of being useful or important. The word value does not have a specific and restricted meaning as it may mean different things to different people Olusegun (2003).
4. Commercial Properties: Immovable properties, land together with all the properties on it that cannot be moved with any attached rights paten business operation (Microsoft Encarta 2009 Microsoft Corporation).
5. Rental Value: As the rent which is an annual or periodic payment of money for the use of land or of land and building, rental value is the highest rent obtainable for a property in an open market at any given time Olusegun (2003).
6. Road Network: Road construction is defined by Lord Hale to be open passage of bring, which from the situation of the adjacent land, and its own depth and wideness with nodal link and connectivity, afford a secure place for the common ridding and anchoring of vehicles for human and goods. Zangand lund University (2004), sees road network to consists of large number of interwoven roads exhibiting many patterns ranging from star like to grid – like with irregular patterns becoming recognized.