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Effect of Environmental Quality on Property Rental Values in Peri-urban Neighbourhoods of Minna, Nigeria

N. I. Popoola
M. A. Jinadu
H. S. Liman
N. T. A. Abd'Razack


The study examined the effect of environmental quality on rental values of residential accommodation at the peripheral neighbourhoods of Minna, Nigeria. Cluster sampling method was employed in the selection of sampled areas and, six neighbourhoods were randomly selected. Sample size of 600 was drawn out of the total 18,387 households in the sampled neighbourhoods using Adams et al. (2007) simplified formula. Estimation rate of 50% and precision range of ±4 were adopted in determining the sample size. Various houses and infrastructure attributes were used in assessing environmental quality, while current rent passing in the year of study was adopted. Pearson moment correlation coefficient was employed in assessing the relationships between environmental quality and rents using environmental indices and mean rents. Results revealed a moderate linear relationship between environmental quality and rents in the 2 neighbourhoods (r= 0.48, N= 591, p= 0.000). The coefficient of determination (r2 = 0.23), implied that only about 23% variation in rents in the selected peri-urban neighbourhoods can be attributed to environmental quality factors; other variations in rents are explainable by other factors relating to physical, legal and locational attributes of individual building. The implication is that, developers invested in location that promised them optimum returns over a period of time without much consideration to the quality of the environment. The study recommends routine housing maintenance, infrastructure provision and refurbishment for the achievement of qualitative and sustainable environment.

Keywords: environmental quality, rental value, peri-urban neighbourhood.

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print ISSN: 1596-6305