Comparing Residential Property Values in Border Towns of Lagos Megacity, Nigeria
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IBIMA Publishing Journal of South African Business Research http://ibimapublishing.com/articles/ JSABR/2021/146557/ Vol. 2021 (2021), Article ID 146557, 11 pages, ISSN: 2169-0367 DOI: 10.5171/2021.146557 Research Article Comparing Residential Property Values in Border Towns of Lagos Megacity, Nigeria Olayinka OLOKE 1, Deborah JESUSEGUN 2, Oluwole ALAGBE 3 and Ayodeji AKINDELE 4 1,2 Department of Estate Management, College of Science and Technology, Covenant University, Canaanland, Ota, Ogun State, Nigeria 3Department of Architecture, College of Science and Technology, Covenant University, Canaanland, Ota, Ogun State Nigeria 4Department of Building and Real Estate, The Hong Kong Polytechnic University, Hong Kong. Correspondence should be addressed to: Olayinka OLOKE; [email protected] Received date: 15 October 2020; Accepted date: 26 January 2021; Published date: 28 May 2021 Academic Editor: Adedamola Olufunke Oluwunmi Copyright © 2021. Olayinka OLOKE, Deborah JESUSEGUN, Oluwole ALAGBE and Ayodeji AKINDELE. Distributed under Creative Commons Attribution 4.0 International CC-BY 4.0 Abstract In this study, the rental values of residential properties in two adjacent communities within the emerging Lagos megacity were examined to find out if certain correlational attributes exist. The communities selected are located in different geopolitical zones (i.e. Lagos and Ogun States), although the Lagos megacity influence has crawled and absorbed parts of Ogun state, such that the physical boundary has virtually vanished. Residents in the two communities as well as estate surveyors and valuers were the respondent groups involved in the study. A total of 236 questionnaires were administered. Descriptive and inferential tools of percentage means and independent sample T-test statistics were employed for the analysis, while the Pearson coefficient of correlation was used to establish the relationship between rental values in the two communities. It was found, among others, that the level of infrastructure development, enforcement of physical planning regulations, administrative jurisdiction, population density and distance to the central business district are the factors responsible for the significant differences in the magnitude of rental values between the communities. The study, therefore, suggested the investment in the physical and socio- economic infrastructure in Ado-Odo/Ota local government area of the megacity as well as the creation of a joint development policy and programme by governments of Lagos and Ogun states so as to overcome the administrative jurisdiction barrier militating against the actualization of the megacity project. Keywords : Adjacent, Megacity, Residential, Value ________________ Cite this Article as: Olayinka OLOKE, Deborah JESUSEGUN, Oluwole ALAGBE and Ayodeji AKINDELE (2021)," Comparing Residential Property Values in Border Towns of Lagos Megacity, Nigeria ", Journal of Eastern Europe Research in Business and Economics Vol. 2021 (2021), Article ID 146557, DOI: 10.5171/2021.146557 Journal of South African Business Research 2 __________________________________________________________________________ Introduction purposes also increase. In most developing nations where physical planning Physical expansion of urban settlements is regulations are weak and suffer poor a global phenomenon which, in recent implementation, sub-urban growth and times has gained momentum in regions developments are often unplanned, regarded as less developed (Abiodun, uncontrolled and disorganized, exposing Olaleye, Dokia and Odunaiya, 2011). The the residents to diverse environmental pattern of growth and development of risks and hazards. urban areas is defined by several factors. While factors like presence of modern Bloch, Fox, Monroy and Ojo, (2015) infrastructures such as pipe borne water, observed that the growth of Nigeria’s electricity, good road network etc.; access urban population has been accompanied by to social services and sporting facilities; the expansion of existing built-up areas and employment opportunities; concentration the emergence of new and identifiably of industrial and commercial activities, urban settlements. For instance, Lagos location of administrative and other megacity according to Mehrotra et. al., government establishments etc. continue (2009), is one of the fastest growing urban to attract population into urban areas, centres. Aside the official estimate of about other factors like the increase in crimes 9 million according to NPC (2006), the UN- rate, environmental pollution, rising cost of Habitat estimated the city’s population to living, rising cost of housing and land be about 15 million in 2006 with 600,000 procurement, traffic challenge, additional migrants added each year. This deteriorating infrastructure, retirement has been projected to about 20 million in and old age related reasons and several 2015. Lagos state, according to Salau, other factors over the years have pushed Lawanson and Odumbaku (2013) has human population out of urban areas to continued to grow in terms of population peri-urban and rural fringes in droves. and space, spilling excess population into Recently, several peri-urban areas are the neighbouring Ogun state. The Lagos experiencing population growth on a scale megacity project covers the whole of Lagos that is unprecedented. For instance, state and four local governments in Ogun Adelekan, Olajide-Taiwo, Ayorinde, Ajayi, State which are at the border of Lagos and Babajide (2014) stated that while the State. These include: Ado-Odo/Ota, Ifo, average population growth rate per year in Obafemi-Owode and Sagamu (Bello and Ibadan metropolis was 0.5 percent Olatubara, 2014). The Ogun State between 1991 and 2006, the average Government report (2015) revealed that growth rate for the peri-urban areas was Lagos’ side of the megacity is made up of 4.8 percent over the same period. 74% of the built-up area and has 85% of Urbanization is the lead cause of peri- the megacity population. Ogun state’s side urbanization and this according to on the other hand has 26% of the built up Adelekan (2016), is a process whereby area and accounts for about 15% of the extensive areas earlier characterized by megacity population. The communities in rural features get absorbed into the city or adjoining local government to Lagos State transformed into peri-urban areas. Peri- that forms part of Lagos State continues to urbanization gradually absorbs existing experience influx of population from the physical developments and paves way for over-populated Lagos metropolis. Thus, the modern structures, social as well as dual character of the Lagos megacity which economic infrastructure developments. comprises communities from two different People move from overcrowded city geographical and administrative centers to the less populated sub-urban jurisdictions prompted the study. The areas. As the population of these areas study analysed and compared residential increases, demands for land for different property values of border communities uses such as housing, commercial, under the umbrella of Lagos megacity education, administration and financial project. services as well as other economic _______________ Olayinka OLOKE, Deborah JESUSEGUN, Oluwole ALAGBE and Ayodeji AKINDELE, Journal of South African Business Research, DOI: 10.5171/2021.146557 3 Journal of South African Business Research __________________________________________________________________________ Literature Review of Lagos megacity and the physical and geographical coverage, therefore, reflects Urban growth and development pattern the underlying process of these three forces at work. However, Bloch et al., Ogu (2005) described the post- (2015) found out that urban growth and independence urban development process development further depends on the in Nigeria in the form of growth by prevailing political and economic situation densification and growth by expansion. as well as government control mechanism. This, as explained, exists at the edges of Lack of good government control results in existing urban areas and refers to the spontaneous patterns of growth around appearance of new parts of a city. Atu et. urban fringes, while proper control sets al., (2012) opined that this occurs when unnecessary expansion within limits. detached improvements and settlements Urban growth and development increases that were not part of urban areas are competition among land use and resources, absorbed at the city borders as a result of urban land cost and ultimately, renters and physical expansion. This aptly describes owner’s housing procurement costs. the urban development process that witnessed the fusion of scattered Urban Infrastructure Development neighbourhoods that were hitherto located within the fringes of Lagos metropolis. Infrastructure development is one vital Growth by densification, on the other hand, socio-economic factor that makes a human describes the emergence of independent settlement urban and livable. The basic houses in areas previously occupied by infrastructure that facilitates development single large housing structures (Bloch, in any neighbourhood includes housing, Monroy, Fox and Ojo, 2015). This pattern of good road network, drainage, electricity, growth as explained in the study, is decent water supply system, waste common with urban cores or existing management system, primary healthcare urban areas and has led to the appearance facilities, educational facilities, effective of various forms