CHAPTER ONE

1.0 BACKGROUND OF THE STUDY

1.1 INTRODUCTION

As far a real estate is concerned, value goes with the same economic laws as

values of other goods and services. Therefore, value of real estate relates its basis

to the law of demand and supply just as price of commodity in the market. The

other underlining factors that guide residential property market in the study shall

also be highlighted. Value is the worth of an article in exchange. The money worth

that will accrue to the lesser will be and inverse function of the value of demand,

long time age especially in the days of oil boom, the property market of the area

was dull because people prefer to build than to let or lease because building cost

was cheap. But, in the decade the property market of the study area has

experienced gradual changes in rental value.

The nature of this change is the focus of this project, the concept of values of

property factors affecting property values and some other related topics will be

treated

Various factors that can being about changes in residential property values

and a graphical representation was made which showed a monumental changes in

their rental values when compared the present year.

1
1.2 AIM AND OBJECTIVES OF THE STUDY

The aim of this study is to examine the trends in the rental value of residential

properties in Florence Estate and Irewolede Estate, Ado Ekiti, Ekiti State

The Objectives are the following;

i. To identify types of residential properties in the study area

ii. To examine the rental values of residential properties for the past 4 years

(2014 – 2017) in the study area.

iii. To examine the causes of variation or trends in rental values of

residential

properties in the study area.

iv. To examine factors that affects the rental values of residential properties

and proffer possible recommendation.

1.3 METHODOLOGY

During the course of this study, data and other important materials were collected

in the following ways,

1. Reference to relevant books and journals

2. Oral interview in connection with the study was carried out within the study

area.

3. Field survey of the study area.

4. The use of questionnaire

2
1.4 SCOPE AND LIMITATION OF THE STUDY

1.4.1 SCOPE OF THE STUDY

Basically, the project propose to examine the trends in rental value of

residential property in Irewolede Estate and Florence Estate. Although the estate

belongs to the Government and private which has vested interest into the

individuals who developed the respective property. The respective landlords who

pay the corporation an annual ground rent now lets out their property for over

years.

In this project a critical examination will being made on the responsible factors and

forces causing changes in rental value of residential properties.

1.4.2 LIMITATION OF THE STUDY

The major problem we encountered was that Ado Ekiti is a large area with many

estate surveyor and value firm, location at relating short distance from each other

as had to result to trekking from one firm to another and also some of the estate

surveyors and values were not willing to answer the oral interview conducted

because of their tight schedules.

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1.5 SIGNIFICANCE OF THE STUDY

In ascribing any rental value to any set of property the future level of

productivity of the property have became a thing of significance. So one of the

things to which the developers are most sensitive is the feature level of rental. A

small amount of the balance in prediction can have great effect in the success or

failure of a project. This as a guide to viability of a development scheme, it is

important that feature levels of income generated from the property must be highly

granted.

In doing this, decision which affects the feature has to be taken into

consideration. But before this can be done, it is necessary to make allowance for

condition that would show ahead. Since current rental on investment as mainly

aims at meeting feature needs of the owner.

Residential property in its nature is more or less dynamic thus a study of past

trends of the property in the market would serve as a useful guidelines to the whole

state be it investors. This enable public as well as private developer know how

their scheme fit into future development of the sub-growing urban area as a whole.

The study of trends of property values most especially residential property is

of great importance to the estate management profession. An understanding of

trends on property value is great importance for their being assessment purpose or

valuation.
4
This is because it provides a good guide and it can be used for projecting

such things as revenue generation, either for the state or local government. An

understanding of the trends in rental value of a property, particularly residential

property, in most cases it can also be used to determines the capital value of the

property in the nearest future and also the actual rent to be taken by the landlord,

could be determined if an accurate trend can be got.

1.6 DEFINITIONS OF TERMS

 Residential Building: Property occupied as human dwelling and include

those developed and let out to tenants on payment of rents or developed and

occupied by owners e.g. Cottage, Tenements, Block of Flat, Bungalows,

Mansion etc.

 Value: Is the monetary worth of a property based on the quantity in which it

is depend to the willing buyer at a particular time and purpose.

 Capital Value: It is otherwise called open market value and it is defined as

the amount of money which a property command for an interest in land and

landed property at a particular time from an individual who are willing to

have adequate knowledge of the market.

 Property: This involves the real estate which has its legal implications and

concern area where individuals, person or group of people sovereign powers

5
exercise their rights of ownership and uses. The nature of right and

responsibility they hold on land.

 Under Developed Property: This is a bare site or half developed building

which has not been fully utilized of its highest and best use.

 Infrastructural Facilities: They are works constructed for public use,

Enjoyment especially when financed by government.

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CHAPTER TWO

2.0 LITERATURE REVIEW

Housing has been generally accepted as the most essential second human

after food. Housing in all ramifications is mere shelter. Since, it embrace all the

social services and utilities that will make neighbor-hood live-able environment.

Onibokun(1972) stated that the housing as a unit of environment has a deep

influence on the health. Social behavior our efficiency. Satisfactory and general

well-been of the whole community. It shows that the cultural social and economic

values of a society as it is the best physical and historical evidence of civilization

in a country. The most important of providing sufficient housing in any country

can not be over stated. It stimulate the national economy.

Expert committee on public aspect gave an ideal definition of housing as been as

residential environment, which include in addition to the physical structure that

man use for refuge, all necessary service facilities equipment for the physical and

mental health for the social well-being of the individual and the community at

large.

Moreover Scott(1989) said that definition of housing could be approach in (3)

three angles:

A. Housing is a basic necessity .an essential community and a fundamental

human right for individual.

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B. Housing gives services associated with shelter ,privacy, comfort security and

independence.

C. Housing, through very expensive in the world over especially in large urban

area like (Kaduna, Lagos, Abuja, Portharcourt, Enugu e.t.c). Relative to the most

other goods and services in the house hold budget, both in term of initial purchase

price new construction and rents ,but it is a necessity.

Adeniyi (1985) defines housing to mean any of the following if not all.

1. Provision of houses for all purpose

2. A measure 0f country’s level of development and standard of living

3. Shelter

4. Houses collectively

5. Lodging

Out of the alternative meaning above, literary housing means prove of covering

over us .the most vital issue is that housing is one of the basic imperative needs of

life.

Oduwaye (2004) explain that within residential neighborhood of any metropolitan

city the access to good roads, drainage, electricity and availability of standard

facilities and amenities will increase property value at any particular time.

Aderamo (2003) is of the opinion that transportation improvement has profound

effects of property value and development.

8
The appraisal institute (1999) posited that charges that affect real estate value an

originate at the national, regional, municipal, community and neighborhood levels.

Sirmans et,al (1999) show that property specific factors such as number of

bedroom or square footage and bathrooms, building size and condition, a modern

kitchen, covered parking, common area amenities (maid service), furnished units

and pet restrictions all affect rent positively and significantly.

Robert (1996) said rent varies with the quantity at housing, renewal exercise

and its location.

Millington (1994) point out that to a valuer, the word “value” is constructed

as “market which he defined to be the money obtainable from a person or persons

willing and able to purchase a property when it is offered for sale by a willing

seller.

Hoch et, al (1993) pointed out the overlapping effects of access to

neighborhood attributes lead to highly complex influences on rent levels and

values.

RENTAL VALUES AND RENT CONTROL IN NIGERIA

One common assumptions in some land use theories and models is that man

is an economic man. Taking off from this common assumption, it is expected that

any property owner will want to derive maximum returns on investments on that

property.

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This applies to housing where landlords are more willing to charge economic rent.

Vagale (1985,p.134), has distinguished between the economic rent (or what

he dubbed anti-social rent) and social rent. According to him, the economic rent

usually consumes 25 % - 40% or more of the annual family income and is charged

to transfer the cost of tenement rates, repairs, insurance etc. to the tenant whereas

social rent is the rent that a family can pay for shelter without foregoing other

essential requirements and this is normally 10% or less of the annual family

income.

It has been argued that if every man cannot be a landlord, he should not pay

landlords more than they deserve (Uyanga 1982). Observations however, have

shown that tenants in fast growing urban centres in Nigeria are always under the

yoke of the ‘shylock’ landlords, Onibokun (1976), for instance, has noted that in

1960, about 11.2% of the income of urban workers went into rent but 15 years

later, this jumped to 30%.

In Lagos as observed by Uyanga (1982), rent have literarily jumped through

the roof to the extent that the Victoria Island/Ikoyi areas now fully deserves the

nickname the millionaires suburb because only a millionaire can afford to pay the

rents being demanded there.

Like every other commodity, housing market is subject to the laws of

demand and supply. In this sense, the astronomical rise in rents is attributable to

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the widening gap between the demand and supply of housing. In Nigeria, scholars

(Onokerhoraye 1984, Abiodun 1985) have observed that the provision of housing

has remained very low relative to the ever increasing demand by the population.

The consequence of this shortfall in housing supply is seen in the

overcrowding of the existing accommodation in the urban centres. Even houses

under construction are being sought after to the extent that tenants are willing to

make five years advance rent payment.

Similar problems exist in different parts of the world. Rent control measures

are now being taken by many governments with varying degrees of strictness. A

comprehensive study by the World Bank indicates that rent regulations differ in

important ways from country to country. In some towns for instance, Kumasi and

Cairo, strict control is enforced: Attempts are made to fix fair rent for each housing

unit or freeze rents at some particular level. As noted by the World Bank expert,

Malpezzi (1991), the freeze is almost never total but rents are allowed to rise after

a certain time without the hike' keeping up with inflation. In other cities like Riode-

Janeiro, liberal rent control is enforced which allows some rent hikes by either

fully or partially indexing them to inflation or setting a ceiling on annual increases.

The study further shows that other cities like Bangalore practice a mixture - a

tightly control segment (enjoyed by public servants), less strictly controlled sector

and one that is currently controlled.

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In Nigeria, the Federal Government in 1975 set up an Anti-inflation Task Force

to look into the causes and consequences of inflation as it related to housing. This

subsequently led to the setting up of a Rent Panel to examine rent structure, rent

control measures, the adequacy of the existing housing programmes and suggest

appropriate remedial measures to tackle the rent problems.

As noted by Okpala (1985), the panel recommendations contained long and

short term remedies. The long term remedies included active participation of the

government in the provision of houses, the establishment of a mortgage bank and

other financial institutions, encouragement of private efforts, the establishment of a

land review commission to study land tenure, take stock of the land situation in the

country and control future uses of land as well as establish land tribunals.

The recommended short term remedies are that urban centres should be

divided into zones and rents should be fixed in such a way that no low or middle

income earners should spend more than 20% of his income on house rent, state,

government to compulsorily acquire any property whose landlord has been fined

twice by a rent tribunal. To solve the problems of advanced payment, the panel

recommended maximum of three months and one year for individual and

institutional tenants respectively.

The recommended short term remedies are that urban centres should be

divided into zones and rents should be fixed in such a wav that no low or middle

12
income earners should spend more than 20% of his income on house rent, state,

government to compulsorily acquire any property whose landlord has been fined

twice by a rent tribunal. To solve the problems of advanced payment, the panel

recommended maximum of three months and one year for individual and

instructional tenants respectively.

By 1978, most state governments have enacted their Rent control Edict

stipulating the amount of rent different categories of accommodation can attract

and setting up of Rent Tribunal to adjudicate between tenants and landlords.

The impact of the rent edicts have not been felt. In fact, as rightly state by

Uyanga (1982) these edict were quickly forgotten as desperate house seekers

begged landlords to name a price.

Nwuba (2008) are necessary to enable investors and entrepreneurs plan their cash

flow projections and make investment decisions. They also provide data for

researchers and help the government in policy decisions.

Iroham, Oluwunmi, Simon and Akerele (2014) assessed the trend in rental values

of commercial properties along Onyemekun road, Akure Nigeria. In their work

they compared trend in rental values of purpose built offices, converted offices and

shopping complexes in the study area. The work discovered that purpose built

office spaces commanded the highest rent and the highest rate of increase in rent.

Also Oni (2009) tried to develop predictive models of commercial property rental

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values in Ikeja, Lagos State Nigeria. This study was necessitated by arbitrary

increase in rental values of commercial properties along busy streets in Ikeja.

Oni (2009) used polynomial regression models and spatial distribution of Ikeja to

develop a model that will assist Estate Surveyors and Valuers in practice to predict

accurately future values of commercial properties along the important roads in the

study area.

Again, Nwuba (2008) carried out an analysis of office rent movements in Abuja,

Nigeria. The work focused on the Central Area of Abuja between 2000 to 2007 and

it tried to determine if the rental growth rates in the study area were significant.

The result showed a steady but upwards movement of rent in the study area.

This result tallied with the findings of Idudu (1989) and Omuojine (1994) in

various related studies.

Nwuba (2004) and Nwuba and Adeagbo (2007) also carried out similar studies in

Kaduna between 1986 – 2014 and 2000 2007 respectively.

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CHAPTER THREE

3.0 STUDY AREA

3.1 THE ADO EKITI METROPOLIS

Since the creation of Ekiti state in 1996 with Ado Ekiti as the state capital,

the town has continued to significantly grow in size with expanding infrastructure

and population.

Consequently, there is need to assess the environmental impact of this

development in order to properly monitor and protect the environment to

continually obtain information on land use demography to provide information on

changes in the urban expansion of Ado-Ekiti. The Area of the city increased from

2.5km2 to 36.9km2 in the span of four decades. The expansion of the city one-

decade after the creation of Ekiti state is 17.1km2.

3.2 HISTORICAL BACKGROUND OF ADO EKITI

In the defunct western state, Ado-Ekiti was one of the provincial

headquarters, the town retained the status under a different name (Local

Government Headquarters) in 1996, Ado Ekiti became the state capital. With

sudden change if the town, many civil servant of Ekiti state origin of whom were

hitherto resident in parts of the former Ondo State, which falls under the new Ondo

State were transferred to Ekiti State.

15
Consequently, the existing infrastructure facilities became grossly

inadequate to meet the yearning need to the dense population. This then sets the

stage for the eventual unprecedented expansion of the town. Unfortunately, as the

town continued to grow, visual representation of the pattern of its growth

(Information of Maps) was not given the desired prior attention by policy makers.

Consequently, ten years after the creation of Ekiti State, there are no large scale of

township maps of its capital city, Ado Ekiti.

Ekiti State has 16 local government councils of which Ado Ekiti Local

government happened to be the one of them. By 1996 census, the population of

Ekiti State was 1. 647, 822while the estimated population upon its creation on

October 1st 1996 was 1, 750, 000. Ado Ekiti population as revealed by the final

result of 2006 census compiled by National Population Commission is 308, 321.

An important features of the state is the large number of hills possesses,

which are often the site of the towns in which much of the populations resides.

Infact the word “Ekiti” was derived from the local termfor hill, the Ekiti s as sub-

group of the Yoruba and indeed their ancestors migrated from Ile-Ife, the spiritual

home for all Yoruba. The Local dialect spoken was slight variation in the different

communities, but this does not prevent Ekiti indigenes from understanding each

other. Christianity, Islamic and traditional religions are all practiced.

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3.3 LAND USE PATTERN
The land use pattern of Ado – Ekiti consist of the following
1. Residential Land use
This takes the greatest percentage of the land use pattern in Ado – Ekiti covering
about 50% some area like Mattew, Atikankan, Irona and Ajilosun are characterised
by old and dilapidated building while new and modern residential building are at
G.R.A. Ilawe road, Adebayo – Iworoko road state Housing Estate road, state
Housing Estate road etc.
2. Commercial land Use
Business and commercial land used in the study are including market, shops, hotel,
motels and banks. Commercial land use covers about 20% of the total land area.
3. Institutional land use
Intuitional land use cover about 10.09% the study has about forty eight primary
and secondary schools and two institution of higher learning which includes the
federal polytechnic and university of Ado – Ekiti and some other private schools.
4, Agricultural Land use
This includes land used for cultivation and it covers about 15%
5. Industrial Land use cover about 2.46% of the total land use in Ado – Ekiti
6. Recreational Land Use
Recreational land use is another type of human activities in form of gaming;
wrestling, swimming and it cover about 2.45%.

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3.4 GENERAL PROBLEMS OF ADO - EKITI
1. Poor Road Network
The road-network of Ado-Ekiti is quite bad and this is the major problem of the
town. The road linking Ado-Ekitito other neighbouring town and the interval road
connecting different street in the town are not good, some are interred.
2. Poor Street Naming and Numbering
The street of Ado-Ekiti are not yet properly planned and aligned, this makes it
difficult to name the streets and completely impossible to number the houses on
these streets adequately. The residents in the town just number their house
themselves without the consent of the government (Ekiti state town planning
bodies).
3. Poor Waste Disposal System The government is yet to provide waste
disposal facility to some areas in Ado-Ekiti, this makes the inhabitants of the town
to dispose of their waste via the easiest available means which most time is
detrimental to the environment.
4. Low Level of Industrial Development
The level of industrial development in Ado - Ekiti is quite unimpressive. One can
hardly find a major industrial area in Ado - Ekiti and this result in hikes in the
prices of commodities as they mostly transported it from other states.
5. Lack of Pipe Borne Water.
The government has refused to provide pipe – borne water for the use of the
public. This causes the majority to depend on well which most times is not pure
enough for drinking, the people take this water as these is no other alternative and
it eventually results to poor health condition of the people.

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6. Inadequate Health Service.
The health service in Ado-Ekiti is quite shallow, as the government is yet to release
find to fortify the state hospital and the health centre with equipment, this results
on increase in mortality rate as live that should have been saved.
7. Neglect of Physical Development
In Ado-Ekiti the building in the Estates street are not in like with the master plan of
the town, the planning rules the regulation are not followed.

3.5 POPULATION GROWTH

With the declaration of Ado-Ekiti as the Ekiti State capital, the population
has increased (1,750,000). It has large population compared with the geographical
location. The high population is as a result of provision of infrastructural facilities
like pipe borne water, electricity, good road, etc. this then saw the influx of people
from different areas.
The city lies between Latitude 7034’ and 7044’ North of the Equator and
Longitude 5011’ and 5018’ east of the Greenwich Meridian. It has a number of
Satellite town around it. To the North is Iworoko, and about 16 kilometers away
from the city, to the east are Are and Afao, about 16 kilometers; to the west are
Iyin and Igede, about 20km and to the south is Ikere, about 18km. Ado-Ekiti enjoy
the priviledge of been a modal town and located at the center of the state; hence
roads that leads to other parts of the state converge on the city. The change in the
economic and political status of the city has brought a corresponding increase in
the number of its inhabitants. The city had a projected population of 274,205 in the
year 1995.

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BRIEF INFORMATION ABOUT THESTUDY AREA
IREWOLEDE ESTATE
Irewolede Estate, also known as Fajuyi Estate is a government owned Estate,
Located along Ilawe Road in Ado Ekiti, Ekiti State.
IrewoledeEstate Layout design is good and the road comprises of tarred and
untarred roads.
There are different types of residential properties in Irewolede Estate Such as Flat,
Semi Flat, Duplex etc.
It has only on police Station.
It is also subdivided into different zones according to the colour of the roof such as
Red Roof, Black Roof, Blue Roof, Brown Roof e.t.c.
FLORENCE ESTATE
Florence Estate is a private owned estate, situated also along Ilawe road,Ado Ekiti,
Ekiti State, The Road Network is good
Unlike Fajuyi Estate, there is no free entry and exist into the estate, the only
common type of residential property in the area is two and three bedroom flat.

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CHAPTER FOUR

4.0 DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

This chapter attempt to explain the various methods or techniques used in

collection of data for a study. It also explain the method of data analysis which is

analyzed to arrive at the conclusion of this research work. This research work used

both primary and secondary source through field survey, research questionnaires as

well as personal interview.

4.2 DATA ANALYSIS

According to the method of sampling employ the use of images, table, charts

is prominent for the dissertation. Fifty(50) questionnaires were administered to the

residents in which only 40 questionnaires were retrieved.

Hence the analysis based on the number of questionnaires retrived as shown

below:

4.1 Zone Occupied by the respondents

Particulars Frequency Percentage %
Florence Estate 20 50
Irewolede Estate 20 50
Total 40 100
Source: Field Survey 2018
From the above table. 50% of the respondents occupy Florence Estate, Also 50%
of the respondents occupied Irewolede Estate.

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Table 4.2 Gender of the Respondents
Particular Frequency Percentage %
Irewolede Florence
Male 15 10 62.5
Female 5 10 37.5
Total 20 20 100
Source: Field Survey 2018
There were more male than female among the respondents. 62.5% of the
respondents were male while 37.5 were female.

Table 4.3 Age Group of Respondents

Particulars Frequency Percentage %
Irewolede Florence
20 – 30 0 0 0
31 – 40 5 5 25
41 – 50 5 5 25
50 ABOVE 10 10 50
Total 20 20 100
Source: Field Survey 2018
From the table above, respondents of age 50 above has the highest percentage of
50% followed by people of 41 – 50 with 25% and 31 – 40 with 25%.

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Table 4.4 Marital Status of Respondents
Particulars Frequency Percentage %
Irewolede Florence
Single 3 2 12.5
Married 15 15 70
Separated 2 3 12.5
Total 20 20 100
Source: Field Survey 2018
There were more married than single and separated among the respondents. 70%
of the respondents were married while 12.5% and 12.5% were Single and
separated
Table 4.5 Years spent by respondents in the zone

Particulars Frequency Percentage %

Irewolede Florence
1–5 18 12 75
6 – 10 2 8 25
Total 20 20 100
Source: Field Survey 2018
30 of the respondents which is 75% have spend between 1 – 5 years in there one
while 25% which is 10 respondents have spent between 6 – 10 years.

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Table 4.6 Reason for staying in the zone
Particulars Frequency Percentage %
Irewolede Florence
Accessibility 5 10 37.5
Security 2 3 12.5
Nearness to Office 13 7 50
Total 20 20 100
Source: Field Survey 2018
From the table above, 15 of the respondents which are 37.5 stay in their zone
because of its accessibility , 5 of the respondents which is 12.5% prefer their
location because of its Security and 50% of the respondents prefer there zone
because of the nearness to office.
Table 4.7 Available infrastructural facilities

Particulars Frequency Percentage %

Irewolede Florence
Electricity 5 10 50
Water 3 5 12.5
Refuse Disposal 2 3 12.5
Drainage System 10 2 15
Total 20 20 100
Source: Field Survey 2018
20 of the respondents which is 50% said Electricity is the available facility in there
zone, while 12.5% and 12.5% of the respondents said Water and Refuse Disposal,
lastly 10 of the respondents said the available infrastructure in their zone is
drainage system.

Table 4.8 Level of satisfaction of infrastructure facilities

Particulars Frequency Percentage %
Irewolede Florence
Satisfied 10 15 75
Not Satisfied 10 5 25
Total 20 20 100

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Source: Field survey 2018
From the decisions of the respondents, 75% of the them are satisfied with the
infrastructure facility provided for them, but 25% of the respondents are not
satisfied.
Table 4.9 The type of Residential property Occupied by the respondents

Particulars Frequency Percentage %

Irewolede Florence
Tenement 0 0 0
Block of flat 15 10 62.5
Duplex 5 10 37.5
Total 20 20 100
Source: Field Survey 2018
From the respondents, non of them occupy a tenement building, 30 of the
respondents which is 62.5% occupy block of flats, while 10 of the respondents
which is 37.5% occupy a duplex.

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Table 4.10 Showing the rent value for the year 2014
Types of property Irewolede Estate Florence Estate
2 bedroom flat #100,000 #120,000
3bedroom flat #130,000 #150,000
4 bedroom flat 165,000
Duplex 200,000

Source: Field Survey 2018

From the respondents, the rental value of 2 bedroom flat in Irewolede Estate for the
year 2014 was #100,000 while it is #120,000 in Florence Estate.
Also, the value of 3 bedroom flat was #130,000 in Irewolede Estate while it was
#120,000 in the previous year .
Moreover, the rental value of 4 bedroom flat in Irewolede Estate is #165,000 and
the rental value of Duplex was #200,000 in the year 2014.
Table 4.11 Showing the rental value for the year 2015
Types of property Irewolede Estate Florence Estate
2 bedroom flat #120,000 #130,000
3bedroom flat #150,000 #170,000
4 bedroom flat #180,000 -
Duplex #250,000 -

Source: Field Survey 2018

From the respondents, the rental value of the types of property increases in
Irewolede Estate and Florence Estate in the year 2015.
The value of 2 bedroom flat increases from #100,000 to #120,000 in Irewolede
Estate while 2 bedroom flat also increased from #120,000 to #130,000 in Florence
Estate.
Also, the value of 3 bedroom flat in Irewolede Increases from #130,000 to 150,000
In the year 2015 while it increased from #150,000 to #170, 000 in the year 2015.
Also, the value of 4 bedroom flat in Irewolede Estate for the year 2015 was #180,
000 and the rental value for Duplex is #250,000.
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Table 4.12 Showing the rental value for the year 2016
Types of property Irewolede Estate Florence Estate
2 bedroom flat #150,000 #170,000
3bedroom flat #180,000 #200,000
4 bedroom flat #200,000 -
Duplex #250,000 -
Source: Field Survey 2018
From the decision of the respondents, the rental value of the types of property also
increased in Irewolede Estate and Florence Estate in the year 2016.
The value of 2 bedroom flat increases from #120,000 to #150,000 in Irewolede
Estate while 2 bedroom flat also increased from #130,000 to #170,000 in Florence
Estate.
Also, the value of 3 bedroom flat in Irewolede Increases from #150,000 to
#180,000 In the year 2016 while it increased from #170,000 to #180, 000 in the
year 2016.
Also, the value of 4 bedroom flat in Irewolede Estate for the year 2016 was #200,
000 and the rental value for Duplex is #270,000.
Table 4.13 Showing the rental value for the year 2017
Types of property Irewolede Estate Florence Estate
2 bedroom flat #160,000 #180,000
3bedroom flat #200,000 #250,000
4 bedroom flat #230,000 -
Duplex #300,000 -

From the decision of the respondents, the rental value of the types of property also
increased in Irewolede Estate and Florence Estate in the year 2017.
The value of 2 bedroom flat increases from #150,000 to #160,000 in Irewolede
Estate while 2 bedroom flat also increased from #170,000 to #180,000 in Florence
Estate.

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Also, the value of 3 bedroom flat in Irewolede Increases from #180,000 to
#200,000 In the year 2017 while it increased from #200,000 to #250, 000 in the
year 2017 in Florence Estate.
Also, the value of 4 bedroom flat in Irewolede Estate for the year 2017 was #230,
000 and the rental value for Duplex is #300,000.

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4.3 SUMMARY OF FINDINGS
 The study has evaluated the trend in residential housing rental values and the
provision of infrastructure development in the study area.
 The study among other things revealed that, properties with better
conditions in terms of infrastructures and physical soundness command
higher rental values, that investment in residential property development will
in the next few years continue to enjoy and maintain an upward growth rate.
 Again that reasonable number of the tenants was not satisfied with the
services of the security in the zones, thus there is need for the ministry in
charge of security to provide it.
 It recommends the need for the provision of essential basic infrastructure by
government and its agencies and schedule sustainable maintenance
programmes for the infrastructure facilities provided.
 The study therefore concludes that developers should ensures that all basic
infrastructural facilities that will attract higher values to their property be
provided, government should make implementable policies and established
housing quality standard and supervisory agency that will be responsible for
monitoring of housing standards.
4.4 PROBLEMS IDENTIFIED
 Problem of land allocation in the study area by both individual and corporate
bodies that have interest in residential property development
 High cost involve in infrastructural facilities development
 Poor maintenance of the available infrastructural facilities
 The main goal of private estate is to make money, there is too much increase
in rent payable by private estate occupier.

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 Rental value in the study area is extremely high and not affordable for
middle class

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CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 SUMMARY
This research work analyzed the trends in rental value of residential properties in
Florence Estate and Irewolede Estate. The Objectives include to identify types of
residential properties in the study area, to examine the rental values of residential
properties for the past for years (2014 – 2017) in the study area, to examine the
causes of variation or trends in rental value of residential properties in the study
area, lastly to examine factors that affects the rental values of residential values of
residential properties and proffer possible recommendation. The questionnaire was
the main tool for gathering data.
5.2 CONCLUSION
The result of the analysis employed in this study has shown that Security has no
effect on the choice of residency by occupants. This is even shown considering the
fact that the more restricted estate commanded less rental values that are
significantly different from the open access gated estate. However, the location of
such estate is paramount particularly in terms of nearness to place of work, good
neighbourhood quality and accessibility. Hence, the location and provision of good
neighbourhood quality amongst others should be taken as important and paramount
in the planning of any estate. Moreso, provision of infrastructure is not a
paramount criterion when investing in Estates in the study area, so investors should
not embark on superfluous projects resulting to “elephant project”. It is believed
that implementation of recommendation proffered will safeguard interest of all
concerned stakeholders.

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5.3 RECOMMENDATION
 Adequate infrastructural facilities should be provided the estate as they
affect rental values of residential properties.
 Redevelopment criteria should be the prime consideration for paying high
rent in the area.
 Government should introduce the control rent in order to control the high
demand of rent by the private bodies.
 The body concern about pubic estate should embark on a comprehensive
tarring of roads.
 Lastly, incentive should be provided to concerned individual for the
extension of service of infrastructure within the estate.

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REFERENCES
Ajibola, M. O., Oloke, O. C. and Ogungbemi, A. O. (2011). Impacts of Gated
Communities on Residential Property Values: A Comparison of Onipetesi
Estate and Its Neighbourhoods in Ikeja, Lagos State, Nigeria. Journal of
Sustainable Development, 4(2), 73-79.
Atkinson, R., and Flint, J. (2004). Fortress UK? Gated Communities, the Spatial
Revolt of the Elites and Time–Space Trajectories of Segregation. Housing
Studies, 19(6), 875-892.
Olayiwola, L. M., Adeleye, O., and Oduwaye, A. O. (2005). Correlates of Land
Value Determinants in Lagos Metropolis, Nigeria. J. Hum. Ecol, 17(3), 183-
189.
Olujimi, J. A. B., and Bello, M. O. (2009). Effects of Infrastructural Facilities on
the Rental Values of Residential Property
Nwana, O.C (1981). Introduction to Educational Research for Student – Teachers,
Heinemann Educational Books Ltd, Ibadan
Oduwaye, L. (2004) Land Value Determination in Medium Density Residential
Neighborhoods of Metropolitan Lagos, Journals of the Nigeria institute of
Town Planners, Volume 2, Pg 79 – 111
Nuhu, M.B. (2008); The impact of trends on Property Letting and investment in
TUNGA-MINNA in journal of the N.I.E.S.V., Volume 31, No 1, Pg 41 – 44.
Kehinde, C.G. (1999) Basic Principle and Methods of Urban and Regional
Planning, Libro-Gem books, Lagos, Nigeria.
Aina, O.C. and Somefun, A.O. (2007); Effect of Facilities Provision on Rental
Value of Residential Properties in Ikeja-Lagos, In Journal of Land Use and
Development studies Volume 3, No 1, Pg 60 – 66
Adegoke, S.A.O. (2005) Fundamentals of land Economics, Multifirm limited,
Yaba-Lagos, Nigeria.
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THE FEDERAL POLYTECHNIC ADO EKITI, EKITI STATE
DEPARTMENT OF ESTATE MANAGEMENT
SCHOOL OF ENVIROMENTAL STUDIES
QUESTIONNAIRE
DEAR SIR/MA
This questionnaire is aimed of collecting information on a study titled: TRENDS
IN RENTAL VALUE OF RESIDENTIAL PROPERTY, A CASE STUDY OF
FLORENCE ESTATE AND IREWOLEDE ESTATE, ADO EKITI.
Please note that this questionnaire is completely anonymous and all information
solicited will be treated with confidence and for academic purpose only.
THANK YOU
1. Which of this area did you occupied
Irewolede Estate[ ] Florence Estate [ ]
2. Gender of respondents
Male [ ] Female [ ]
3. Age group of respondents
20 – 30 [ ] 31 – 40 [ ] 41 – 50 [ ] 50 above[ ]
4. Marital Status of respondents
Single[ ] Married [ ] Separated [ ]
5. How long have you occupied a property in this area?
1 - 5Years [ ] 6 – 10 years[ ] 11 – 15years [ ] 20above [ ]
6. Why did you prefer staying in this area
Accessibility [ ] Security [ ] Location [ ] Nearness to place of work [ ]
Others, Please Specify…………………….
7. What are the available infrastructural facilities in your zone?
Electricity [ ] water [ ] refuse disposal [ ] Drainage System[ ] Banks [ ]
Schools [ ] Access Road[ ]
8. What is the level of satisfaction with the available infrastructure facility in your
zone?

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Satisfied [ ] Not Satisfied [ ]
9. Which type of residential property did you occupied?
Tenement [ ] Block of flat [ ] Duplex [ ]
10. How much did you pay for the type of residential property you occupied for the
year 2014?
#50, 000-#100, 000 [ ] #100, 000 - #150,000 [ ] #150,000 - #200,000 [ ]
#200,000-250,000[ ] #300,000 above [ ]
11. How much did you pay for the type of residential property you occupied for the
year 2015?
#50, 000-#100, 000 [ ] #100, 000 - #150,000 [ ] #150,000 - #200,000 [ ]
#200,000-250,000[ ] #300,000 above [ ]
12. How much did you pay for the type of residential property you occupied for the
year 2016?
#50, 000-#100, 000 [ ] #100, 000 - #150,000 [ ] #150,000 - #200,000 [ ]
#200,000-250,000[ ] #300,000 above [ ]
13. How much did you pay for the type of residential property you occupied for the
year 2017?
#50, 000-#100, 000 [ ] #100, 000 - #150,000 [ ] #150,000 - #200,000 [ ]
#200,000-250,000[ ] #300,000 above [ ]

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