ABSTRACT
This study delves into the pattern and level of development of two states in NigeriaPort Harcourt and Lagos, to compare the residential property development challenges. The study attempted to find out if there are significant differences as well as definite relationship between the values. Questionnaires were distributed to two groups of respondents which are 84 estate surveying and valuation firms in Ikeja, Lagos and 152 residential property owners/residents in the two communities. Data were analysed with statistical tools such as tables, percentages and mean. Student’s t-test statistics was used to ascertain the difference in rental values while Pearson coefficient of correlation was used to establish the degree of relationship. The importance of factors influencing rental values was determined using the relative importance index. Analysis were presented in percentages, tables and charts and then discussed. Result showed that there are significant statistical differences in rents of the two communities despite the proximity. It was further observed that neighbourhood density and level of infrastructure development play vital roles in the gaps observed in properties values. However, the Pearson correlation coefficient revealed that there is a relatively strong positive correlation between residential values of properties in the two states. The research therefore concluded that for property market on the Ado-Odo/Ota side of the emerging Lagos megacity to attain its full potential, there is the need for major urban renewal, investment in physical and economic infrastructure via partnership with private sectors and property owner in the communities.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
According to [1], development is a step by step alteration in the manner of existence, advent and perpetuation of perfect state of affairs in a fiscal or commercial, ethnic, and communal setting. Development refers to an inherent growth in all aspects of a city that leads to progress. The process of making a municipality advance to modern standards through facilities improvement, construction of new buildings and interrelated access routes can be referred to as urban development in that community. [2] noted that people go to border communities in order to build their own houses since housing in city centers are scarce due to excess demand. The author further observed that the problems of overcrowded city centers can be a re-direction to people to live in the outlying regions. This scenario of urban infrastructural development causing population spread is what automatically pushes some of the city’s population outside of the urban areas to its fringes or border communities. Neighborliness communities then takes up a smaller and unplanned replica of where the first development started, also having an effect on further neighboring communities. Most times, this continues and leads to an unplanned and unhealthy growth and development of fringes or border communities. For instance, [3] averred that the growth of Nigeria’s urban population in both absolute and relative terms has been accompanied by the expansion of existing built-up areas and the emergence of new and identifiable ‘urban’ settlements. [4] also opined that a community’s inherent ability to progress is affected by its remoteness or closeness to a major urban center. [4] observed that while a major percentage of the world’s populace work in urban areas, the population of those living at remote areas is ironically dense. In Nigeria, the population has increased over the years causing what is known as urban expansion and this is to an extent that one can no longer tell when a land is ‘urban’ or ‘rural’ [3]. The population of urban centres in Nigeria often leads to an urban sprawl into its border communities. There have been a number of cases of urban sprawl in Nigeria. In Akure, people have been seen to migrate into the sub urban areas because of their need for a larger space [5]. Also, [4] observed that the Ota community is one of the major border communities that have been affected in social structure by its closeness to Lagos State. [3] also observed a similar case in Makurdi where the movement of state capital triggered a kind of migration which led to a sudden rise of economic developments and thereafter causing a spread to surrounding communities. The continued influx of people from city centres to fringe communities often leads to increased demand for urban infrastructure and ultimately, increased investment in the provision of these infrastructures, particularly housing related infrastructures. Even though the population growth and expansion may be unexpected and unplanned for, the value of landed properties in the boundary communities are directly affected by the level of urban development in the community as increase in demand is directly proportional to increase in value [6, 7].