Impact of Informal Settlement on Residential Property Rental Value in Ibadan Metropolis, Oyo State
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Date
2024-12
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Lead City University, Ibadan
Abstract
The rapid growth of informal settlements in Ibadan has become a major concern for urban planners, policymakers, and property investors, as it has significant implications for residential rental values. This study examined the Impact of informal settlement on residential property rental value in Ibadan Metropolis, Oyo State. A descriptive and inferential quantitative research design was employed, with a sample size of 360 respondents drawn from five local government areas in Ibadan Metropolis. Data was collected through structured questionnaires administered to residents and estate surveyors. Descriptive statistics, including mean scores and frequency distributions, were used to summarize socio-economic characteristics and rental trends, while Analysis of Variance (ANOVA) was applied to assess the impact of informal settlements on
rental values and identify contributing factors. Findings revealed that between 2012 and 2022, rental values for properties in informal settlements across various local government areas of Ibadan exhibited a steady increase, with the highest growth seen in a Bungalow in Ibadan North East LGA (300%) and 172% for a 3-bedroom flat. Factors contributing to informal settlements included poverty, rapid urbanization, and ineffective housing policies. This is further demonstrated by the high proportion of low-income households, with 66.4% of respondents earning below ₦40,000 monthly. Impacts were primarily due to poor infrastructure, inadequate sanitation, and overcrowding. Respondents cited issues such as haphazard housing construction (M=4.49) and poor sanitation (M= 4.35) as significant factors contributing to the decline in
property value. In Ibadan South East and North, respondents reported the most substantial declines in quality of life, which directly affected rental pricing. The study recommended the development and implementation of integrated urban planning strategies that consider both formal and informal settlements. This approach should prioritise equitable distribution of resources, services, and amenities across the entire metropolis.
Keywords: Housing, Informal Settlement, Residential Property, Rental Value, Urbanisation
Word Count: 289
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Keywords
Housing, Informal Settlement, Residential Property, Rental Value, Urbanisation
Citation
Kate Turabia