Public Infrastructure vs. Residential Property Rental Value in Lagos, Nigeria

Abstract: Basic infrastructures have suffered major neglect over a long period of time in many Nigerian cities. Yet, the efficiency of any form of human activity largely depends on the provision of efficient infrastructure which in turn affect the demand and choice of residential property. This study examined the impact of infrastructure provision on property values in Lagos, Nigeria. Questionnaires were administered on residents across the low, medium and high residential neighbourhoods as well as registered Estate Surveyors and Valuers in Lagos State. Data was analysed by both descriptive and inferential statistical tools. The study revealed that infrastructure provision has a population magnet attracting more people to settling in a particular neighbourhood. The model summary for regression of the effect of infrastructures on property values further revealed 99.8%, 99.3% and 99.7% of the sampled variations in low, medium and high density areas respectively are attributed to the residential rental value. Fair and equal distribution of infrastructures is hence recommended to reduce discrimination on the basis of availability. Also, government should embark on site and service scheme to provide infrastructures and other amenities that will enhance property values in the less accessible areas.