ARTERIAL ROAD NETWORK AND COMMERCIAL PROPERTY VALUES
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
ARTERIAL ROAD NETWORK AND COMMERCIAL PROPERTY VALUES
CHAPITRE ONE
INTRODUCTION
1.1 Background Of The Study
Transportation and property are critical in the physical and economic development of towns and cities around the world. Property and land prices tend to rise faster in locations with developing transportation networks and fall more quickly in areas without such upgrades. Rapid and sustained increases in housing and land prices are projected in cities as transportation improves and economic and population expansion accelerates (Goldberg, 1970).
Without transportation, which is a critical aspect for physical and economic growth, man, nations, regions, and the world would be severely hampered in their development (Oyesiku, 2002). Transportation and land use are inextricably linked. Indeed, previous research has found significant and consistent links between them (Ewing and Cervero, 2001; Polzin, 2004).
According to Bailey, Mokhtarian, and Littlel (2008), a transport route is a specific development pattern or road network that is primarily described by regular street patterns as an essential aspect of human existence, development, and civilization.
The route network, combined with increasing transportation expenditure, results in altered levels of accessibility, as shown in Cost Benefit Analysis, travel time savings, and other benefits.
These advantages are visible in enlarged catchment areas for services and amenities such as shops, schools, offices, banking, and recreational activities.
The components of road networks are observed in terms of accessibility, connection, traffic density, level of service, compactness, and density of specific roadways. Level of service is a metric used to determine the quality of service provided by transport devices or infrastructure, and it is a comprehensive approach that takes into account several factors such as traffic density and congestion rather than overall journey speed (Mannering, Walter, and Scott, 2004).
1
Access to main roadways provides relative advantages, therefore commercial users locate to take use of the advantages. Modern enterprises, industries, trades, and general activities rely on transportation and transportation infrastructure, with the movement of products and services from one location to another becoming essential and inseparable parts of global and metropolitan economic survival.
The evolution of numerous modes of transport has proven critical to physical and economic progress. Human porterage, trains, ropeways and cableways, pipelines, inland waterways, sea, air, and roadways are examples of such modes (Said and Shah, 2008).
According to Oyesiku (2002), urbanisation has a long history in the growth and development of Nigeria. Extensive growth was a feature of the nineteenth and twentieth centuries, with economic and administrative decision-making concentrated on Lagos,
Ibadan, Kaduna, Jos, and Enugu, and a high degree of specialisation and higher population associated with increased specialisation of goods and services.
According to Wyatt (1997), urban areas tend to emerge near nodes in transportation networks, and sites with a solid road network will have a comparative advantage over regions with a bad network.
Such relative advantages are evident in urban areas where several transport routes intersect with a high degree of compactness, connectedness, density, length, and accessibility displayed within intra- and inter-urban road networks.
Ikeja is a typical example in Nigeria’s history of urban expansion and development. In 1976, the city was designated as the capital of Lagos State, and better road networks were built to accommodate the increased concentration of pedestrian and vehicular traffic. Similarly, commercial activities such as banking, retail/wholesale companies,
and professional services converged to capitalise on proximity to the seat of government. Consumers and ancillary service providers were drawn in by the concentration of operations.
This contributed to a rise in demand for business space, as well as the accompanying effects on commercial property values along major arterial highways.
The majority of commercial properties in Ikeja are currently positioned along arterial routes that carry the majority of vehicle and pedestrian traffic. Rental values have risen along the individual arterial roads, though not at the same rate.
Against this backdrop, this study assessed the arterial roadways, determining their degrees of accessibility, connection, and traffic intensity, as well as the pattern of
2
The relationship between the explanatory variables of the road network in Ikeja, Nigeria, and commercial property values.
1.2Statement Of the Research Problem
Many research have been conducted on the relationship between transport and urban property values (for example, Dewees, 1976; Damm et al, 1980; Wolf, 1992; Singh, 2005). Some previous research found a favourable association between transportation and property values, while others found a negative relationship.
For example, in a study on the relationship between rail travel costs and residential property values, replacing a streetcar with a subway increased site rent at a location perpendicular to the facility within a one-third mile walk to the station (Dewees, 1976); and permanent transportation improvements had a positive influence on land values (Wolf, 1992).
It was determined that there was a statistically significant relationship between the distance of a parcel of land from the nearest Metro station and land price (Damm, Lerner-Lam, and Young, 1980),
whereas there was evidence that residential property prices decreased immediately around the transport investment or station value uplift through changes in land values (Singh, 2005).
Urban regions around the world provide a lot of advantages in terms of population concentration, followed by demand for commercial buildings and transportation. Ikeja is a prime example of a city that has grown fast since it became the capital of Lagos State in 1976. Road construction expanded significantly with the development of residential precincts,
which benefited from increased demand for lettable space in commercial properties. Many private firms, retail stores, and commercial banks congregate in the city to capitalise on opportunities given by positions near the seat of government, drawing complementary services. This resulted in a high concentration of traffic and pedestrian movements, particularly along access routes.
The roadways have a number of nodes and linkages that form networks of both arterial and smaller routes where commercial buildings can be found. Commercial users displaced residential users, causing sites to be at highest and best usage,
resulting in increases in commercial property prices. The compact nature of numerous routes that sometimes intersect affects accessibility within the road network.
3
restrict volume of traffic. The road network is made up of nodes and links that govern the network’s connectivity and accessibility.
A variety of things influence property values. These elements can be either intrinsic or extrinsic. Extrinsic influences include a rise in demand for lettable space, location, the quality of nearby properties, proximity to parks and recreational facilities, and local and national economic situations.
External factors are caused by the natural characteristics of the property, which have an impact on the city in which the property is located. Intrinsic characteristics emerge from the nature of the property and relate to physical attributes such as room size, condition of repair, decoration, and facilities.
Physical aspects of the structure, changes in taste and demand, the effect of nearby activities, economic activities, inflation, and changes in legislation are all factors that influence how much users are ready and able to pay in an open market transaction.
Changes in population, planning and development projects, regulation, and the availability of good road networks all have an impact on commercial property demand (Hendon, 1971; William, Davies, and Johnson, 1980; Richmond, 1982; Millington, 1982; Olayiwola, Adeleye, and Oduwaye, 2006).
Earlier theorists (Burgess, 1925; Hoyt, 1939; Harris and Ullman, 1951; Lean and Goodall, 1977) generally believe that sites adjacent to major transport routes have a relative advantage over those located some distance away, and that other sites located at route intersections have a relative advantage,
with greater advantages belonging to sites located at the centre of the transportation system. These benefits are assessed in relation to accessibility, which has distinct features in regard to individual sites, hence distinguishing between sites in terms of accessibility benefits.
Many of the aforementioned research focused on the effects of factors on property values in general, with little attention paid to road network pattern and its effects on commercial property values. Possible links between road networks, geographical characteristic, demand and supply, and accessibility and commercial property values have consequently elicited the interest of the researcher in this regard.
The association cannot be established without taking into account the explanatory variables on the one hand and commercial property values on the other. The study of urban environments in connection to land uses, particularly commercial properties, is prompted by the usage of roadways. It is against this background that this study was designed.
4
1.3 Research Questions
The preceding has raised a number of problems about road network analysis and commercial property valuations in Ikeja, Nigeria, which will be addressed. The relationship between arterial road network and commercial property values cannot be discovered without careful analysis of the network’s factors,
particularly those related to arterial roads and other explanatory variables and commercial property values. The following are some essential questions to help the study achieve its stated objectives:
1. What is the layout of Ikeja’s arterial roads?
2. What is the spatial pattern and trend in the research area’s commercial property values?
3. In the presence or absence of additional explanatory variables, what are the links between commercial property values and arterial road networks?
4. What are the individual contributions of the explanatory variables to commercial property value variability?
5. What are the models used to explain and predict the link between the explanatory variables and the values of commercial properties?
1.4 Aims and Objectives of the Research
The purpose of this study is to examine the network of arterial roadways, as well as other explanatory variables and commercial property values in Ikeja, with specific goals of:
a. Examine the arterial road network pattern in the research area.
b. Investigate the spatial structure and trend of demand, supply, and commercial property values in the studied area.
c. Determine the correlations between commercial property values and the road network in the study area, in the presence or absence of other variables.
d. Determine the contributions of each explanatory variable to the variation in commercial property values in the study area.
e. Create models that forecast variability in commercial property values based on the explanatory variables.
5
1.5 Research Theories
As a result, the following possibilities were proposed:
1. In the study area, there is no significant association between commercial property values and independent explanatory variables.
2. Individual contributions of explanatory variables to variability in commercial property values in the research region are not different.
1.6 Justification and Rationale of the Research
It is common knowledge among previous studies on accessibility and property values that accessibility determines profitability and utility. The greater a site’s accessibility, the greater its comparative advantage, and the bigger the comparative advantage, the higher the demand for property at that location.
According to Lean and Goodall (1977), urban areas naturally develop at nodes in the transport network, and those locations with good transport access to other areas have a relative advantage over those with poorer transport facilities, and such urban locations are likely to be where transport routes converge.
Estate Surveyors/Valuers and Planners, on the other hand, think that accessibility has a significant impact on property values, with properties along important roads and near nodes having higher values (Ogunsanya, 1986; Oduwaye, 2004; Omoogun, 2006).
However, the accessibility described in these research was dependent on intuition rather than empirical evidence to establish the relative accessibility advantages of the places.
This research borrows methodologies from different domains such as operational research, geography, transportation, and urban planning to describe and analyse the road network in order to determine the relative accessibility of each arterial road. It is considered that the approaches utilised in these domains can be applied to estate management studies,
allowing for the cross-fertilization of research ideas across multiple fields. In this regard, the findings of this study are useful in evaluating the relationship between the arterial road network and the valuations of commercial properties in Ikeja.
Furthermore, it is critical to develop a technique for estimating the relative accessibility of locations in the arterial road network. Even once relative advantages are recognised, models for projecting commercial property values in Nigeria must be developed. The model could become
6
Professional Estate Surveyors and Valuers can use this application to shift their practise of relying on intuition to estimate the relative accessibility of sites on a road network. Similarly, amid today’s risks and uncertainty in property development,
developers, Estate Surveyors and Valuers, and feasibility and viability appraisers must anticipate the supply of, demand for, and fair market values of commercial properties. This has emphasised the significance of this research.
Based on the study area’s complexity of commercial, industrial, and real estate operations, as well as the degree of urbanisation, the study’s deductions and conclusions may be applicable to other cities in Nigeria.
The study would also pique the curiosity of academics in estate surveying and valuation, particularly in transportation valuation, which has likely not been investigated in Nigeria.
A survey of the literature revealed that research on Nigerian intra-urban road networks using the graph-theoretic approach to estimate accessibility effects on commercial property prices are scarce;
the only ones accessible were on the United States and the United Kingdom. As a result, this study will contribute to empirical studies on intra-urban road networks and their impact on commercial property values in Ikeja, Nigeria.
1.7 Scope of The Study
International, inter-city, and intra-city roads are the three types of roads. International and inter-city roads are often major or arterial roads, but intra-city roads might be minor or major (arterial). The study concentrated on arterial roads in Ikeja’s intra-urban network. Ikeja has ninety roads, thirty-seven of which are arterial.
Only twenty of the thirty-seven arterial roads in the research region transverse commercial axes, while the rest serve institutional, industrial, and residential neighbourhoods.
As a result, this study excluded inter-city routes such as the Lagos/Abeokuta Motorway, Oworonsoki/Apapa Motorway, Ikorodu Road, and Lagos/Ibadan Motorway, which form rings around the study region.
According to preliminary research, there are five categories of commercial properties in the study region. These include retail storefronts, banking facilities, office buildings, warehouses, and non-specific commercial structures.
The focus of this research was on offices, stores, banking spaces, and other sorts of business users along arterial routes, with residential, industrial, and non-specific commercial properties being excluded.
7
The study was limited to Ikeja intra-city roadways due to the magnitude, topography, and complexity of Lagos State roads. Ikeja is the most populous part of Ikeja Local Government, which is one of four zones recognised within the broader Lagos metropolitan area.
The four zones (Lagos Island, Apapa, Lagos Mainland, and Ikeja) constitute commercial hubs of the Lagos metropolis, revealing activity areas where employment, commerce, transit terminals, and other enterprises are concentrated (Oni, 2008).
In order to anticipate commercial property prices along each arterial road, road network analysis was performed to establish the levels of accessibility and connection of nodal sites, as well as road and traffic densities.
In doing so, the research focused solely on the arterial roads classified as commercial axes in the study region, excluding secondary connecting roads, while the relationship between arterial roads and commercial properties in the study area was investigated.
Many considerations influenced the selection of Ikeja. For starters, it is the capital of Lagos State in Nigeria, as well as a socially diverse metropolis with a range of local, state, and federal government highways. Second, the property market in the research area is well developed, and variations can be identified and analysed.
full data on commercial property prices are accessible in Ikeja, one of the few cities in Nigeria that allows for a full survey of its commercial properties, with intelligent occupants of business premises making data gathering possible.
Third, the city has a variety of property journals in circulation where professional Estate Surveyors and Valuers offer commercial properties for sale or letting.
As a result, the property market is quite dynamic and up to date, with stakeholders, prospective tenants, property owners, and investors being versatile and aware about market happenings.
Fourth, according to Nigerian standards, the Ikeja road network is one of the most complex in terms of connectivity, human and vehicular movements, and the availability of computerised and up-to-date data and satellite photos of the road network.
1.8 Limitations of the Research
The research looked at arterial highways and commercial property values in Ikeja. It made no attempt to explore the structural soundness of the arterial road network or to evaluate the methodologies and accuracy of the procedures used by respondents in determining the valuations of commercial properties in the study region. It simply examined
8
Accessibility, connectivity, arterial road network, distance to the most central location in the study region, demand and supply of commercial properties in relation to commercial property values in the study area are all factors to consider.
The arterial road network was analysed using graph theory, and the opinions of Estate Surveyors and Valuers working in the research region were consulted. Although the accuracy of such judgements was not in doubt, it was not investigated.
Several difficulties were faced during the research. Due to the busy nature of Estate Surveying and Valuation practitioners and the “carefulness” of the sampled commercial property occupants, there was a significant reluctance on their parts to volunteer information.
Some respondents, particularly Estate Surveyors and Valuers, were slow to complete the questionnaires, and it took the researcher’s personal influence (as their colleague) and the assistance of the Lagos State Branch Chairman of the Nigerian Institution of Estate Surveyors and Valuers to obtain their ultimately impressive responses.
Furthermore, the researcher took the time to calm Occupiers’ anxieties by explaining the purpose of the research and how it would not subject them to levies or charges or any liability to the Lagos State Government.
In the study region, the populations of commercial properties and occupiers were ambiguous. The study population was too huge, and there was no census available to count them, making determining their number difficult. The researcher, on the other hand,
found a solution around the problem by employing a type of sampling based on an estimated population of occupiers and direct observation of the sampled premises to calculate the average number of occupants. These constraints, however, had no effect on the quality of the data obtained or the conclusions reached from it.
In some circumstances, the diverse judgements of Estate Surveyors and Valuers were relied on to the exclusion of those of occupants, particularly on questions requiring a kind of professional opinion.
This was in response to the outcomes of previous pilot testing, which revealed that the occupiers regarded such inquiries excessively technical.
As a result, concerns such as the accessibility of the roads in the study area, as well as the supply and demand for commercial properties, were later restricted to Estate Surveyors and Valuers.
Need help with a related project topic or New topic? Send Us Your Topic