RENTAL VARIATIONS IN NIGERIAN HOUSING
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RENTAL VARIATIONS IN NIGERIAN HOUSING
Chapter one
1.0 Introduction
1.1 Background of the Study
Shelter is an essential requirement in life. An individual can meet this requirement by either occupying his own (owner’s occupier) property or renting another person’s home. In our traditional society, the requirement for shelter is mostly supplied by the first alternative, owner occupancy.
The situation has changed as a result of the urban centre emergency. Many people are no longer interested in owning property due to the difficulties in acquiring land and the high expense of construction.
As a result, they are forced to rent other people’s residences in order to meet their housing needs. As a result, two kinds of urban residents have emerged: the landlord and the tenant.
Under this system, the renter pays the landlord a set amount of money in exchange for the use of the owner’s home. This amount is commonly referred to as rent.
During Nigeria’s civil war from 1966 to 1970, numerous landed properties in the metropolitan districts of the old Eastern Region of Nigeria, including Enugu, were devastated.
As a result, the availability of landed estates decreased dramatically following the war. Furthermore, during the post-civil war period, an unprecedented number of rural people migrated to metropolitan areas as a result of the visible riches brought about by the oil boom. This
This resulted in a high demand for the already limited quantity of landed properties. As a result, rents for landed properties climbed significantly.
This tendency has continued, with the result that “the ordinary worker is paying
According to Oshadiya (1985), 30% to 40% of his pay is used for rent. As a result, rents have increased.
The properties have resulted in a difference in rental rates.
Rent tends to vary in metropolitan areas due to the location advantage (for example, excellent location) that some properties have over others for commercial and residential usage.
1.2 Statement of Problem
The location of economic characteristics has been a tough subject to grasp. Although the primary goal of commercial properties is to generate financial advantages, while residential properties are to provide habitation, shelter, and comfort, the demand for land is a reflection of the profitability or utility that may be derived from its use. The greater the benefit to be gained from a specific use, the higher the rent that the user is ready to pay for it.
Rent levels on residential and commercial properties appear to vary greatly in Enugu and throughout Nigeria.
This study aims, among other things, to determine the causes of rental variation in commercial and residential properties in Nigeria, using Ogui New Layout and G.R.A as case studies.
1.3 Aim and Objectives of the Study
The primary goal of this study is to investigate the causes of rental variation in commercial and residential properties in order to create a tool for detecting rent-related concerns in Enugu and Nigeria as a whole.
To reach the standard target, the following objectives will be pursued:
i) Determine the rent levels for commercial and residential properties in the study. ii) Analyse the factors driving these rents.
iii) Determine or investigate whether the income of prospective buyers/tenants influences their decision to purchase property.
iv) Determine if rental values differ between residential and commercial properties in the study. v) Determine demand rates for commercial and residential properties.
1.4 RESEARCH QUESTIONS.
i. What was the rent level for commercial and residential properties in Ogui New Layout and G.R.A from 2002 to 2004?
ii. What factors influence the rentals passed on by commercial and residential properties?
iii. Does the income of prospective buyers/tenants influence their decision to purchase property?
iv. Is there a difference in rental value or rent passing between residential and commercial properties in the research area?
v. Which property type is in higher demand, commercial or residential?
1.5 Significance of the Study
The findings of this study will be beneficial to the following groups:
To begin, tenants who are charged rent for a variety of reasons, particularly when the homes are visually similar. This will again allow investors to learn not just how occupiers think, but also why and what they consider when purchasing properties for specific uses.
Second, the broader public now understands why the rents commanded by these properties must differ.
Finally, this research will assist in determining the elements influencing commercial and residential properties, which is a necessary prerequisite for successful development, as well as inspiring students’ interest in conducting additional research on the topic.
1.6 Scope of the Study
The study spans three years (2002–2004) and is limited to chosen buildings (residential and commercial) consisting of blocks of flats and tenements in Ogui New Layout and G.R.A, Enugu.
1.7 Limitations of the Study.
As expected, this effort encountered various challenges throughout the data collection phase. The subject of rent passing on a property (residential or commercial) is typically regarded as classified information, which is not easily divulged to anyone, particularly researchers.
This was widely suspected to be the reason why some estate surveyors, property owners, tenants, estate firms, property companies, and even estate agents who were approached through oral interviews, discussions, and visits found it difficult to reveal essential information.
Despite being told that the exercise was strictly for academic purposes, a good number of them still harboured fears that it could be for property rating and taxation purposes.
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