An overview of how urbanisation affects property values.
Aim and Objectives
The aim of the research is to examine the effects of land use planning on residentialproperty values with a view to providing direction to investors on what to consider wheninvesting in the area, while the specific objectives are to:
i. To evaluate the urban planning systems in Ibadan.
ii. To measure the trend in rental values of residential properties in both the plannedresidential areas and the unplanned residential areas between 2004 and 2014.
Scope of the Study
The study is carried out in Ibadan, the capital of Oyo State. This research covers two areas in Ibadan metropolis which includes Ojoo located in Akinyele local government and Bodija located in Ibadan North local government area. The research will determine the trend in rental values for a period of ten years, 2004-2014 in the two areas especially the residential properties in the area. It is limited to residential properties only because residential properties are the most common types of properties in the areas and are constituted majorly by a high number of tenants which would help determine the trend in rental values of the properties over the period of years.
Justification of the Study
Earlier studies such as Harvey (1993), Aibangbee (1997) etc. have shown that properties in planned residential neighbourhoods tend to command a higher rent than properties that are situated in unplanned residential neighbourhoods. Planned residential areas are serviced with basic infrastructures that are makes lie easier to live. Land use planning activities since time memorial has been known to impact positively on the overall condition of an area, in terms of economic, social and physical considerations. Studies have shown that planning activities in area increases the value of the area, by improving the physical conditions of the area thereby increasing its aesthetic value, also bringing about an increase in the economic value and social value. It has also been noted that people who live in areas that are serviced with some certain basic infrastructures live in better conditions thus bringing about a higher standard of living that people living in areas that are unplanned. One of the major goal of any government is to increase or better the lives of its citizen and this can be done through adequate planning of the environment, so therefore this research work will serve as a recommendation for government to take part actively and ensure proper land use planning, while the people should be made to comply with such regulations, necessary infrastructures should also be made available in the unplanned areas. It will also help to determine the relationship between urban planning and residential properties which is an essential prerequisite for property developers in determining their location of properties as well as stimulating interests in students to carry out further research on the topic. And finally, it will serve as direction for individuals (tenants) in their choice of property location.