IMPACT OF THE HIGHER INSTITUTION ON ITS NEIGHBOURING RESIDENTIAL PROPERTY MARKET
ABSTRACT
This project examines the impact of higher institution on its neighbouring residential property market. Part of the objectives was to identify the trend of rental values of property market located close to the higher institution. To achieve this, residents were contacted and their opinions were gotten through questionnaires issued. A total number of hundred (100) questionnaires were issued and seventy (70) were retrieved with response rate at 70%. The use of frequency distribution tables was used to analyze data and results showed that insufficient hostel accommodation has led to increase in rent of property of its neighbouring property market.
The study recommends among other things that increase in numbers of students accommodation will reduce demand pressure on available accommodation.
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study .......................................................................................... 1
1.2 Statement of the Problem ......................................................................................... 6
1.3 Aim and Objectives ...................................................................................................7
1.4 Justification of the study…………………………………………………………...7
1.5 Scope of the Study………………………………………………………...………..8
1.6 Limitations of the Study……………………………………………………………8
1.7 Significance of the study.............................................................................8
1.8 Definition of Terms.....................................................................................9
CHAPTER TWO: LITERATURE REVIEW
2.1 Concept of Property………………….…...................................................................11
2.2 Types of Residential Property……………………....................................................12
2.3 Concept of Value……………………….…..............................................................13
2.3.1 Types of Value…………………………………... ...............................................14
2.4 Theories of Rent………………………....................................................................15
2.4.1 Types of Rent………………………………….....................................................15
2.4.2 Factors affecting Rental values in Study Area…… ..............................................16
2.4.3 Determination of Rental Values…………………. ...............................................17
2.5 Student Housing Market………………....................................................................18
2.6Location and Choice of Accommodation...................................................................19
2.7 Types of Student Housing………………….............................................................19
2.8 Student Housing Demand …………………………................................................20
2.9 Housing Markets Segments………………………………………………………20
CHAPTER THREE: RESEARCH METHODOLOGY AND STUDY AREA
3.1 Introduction ..............................................................................................................22
3.2 Sources of Data Collection........................................................................…………22
3.3 Sampling Technique .................................................................................................23
3.5 Sample Frame and Size ...........................................................................................23
3.6 Method of Data Analysis …….................................................................................23
3.7 Study Area …………………...................................................................................23
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction .............................................................................................................26
4.2 Distribution of Questionnaires....................................................................................26
4.3 Respondents’ Occupation ..........................................................................................27
4.4 Types of Residential properties occupied by respondents ......................................27
4.5 Respondents’ Occupancy Status...............................................................................28
4.6Availability of infrastructural Facilities in the Study Area......................................29
4.7 Respondents’ Mode of Payment of Rent...................................................................30
4.8 Respondents’ perspective on factors that have impact on rental value……………………………………………………………….................................30
4.9 Extent of Growth of Student Housing Demand……………………...….………...31
4.10 Comparative trend of Rental values of Aba-Erinfun and Ijan-Ekiti……..............32
4.10.1 Trend of Rental values of Aba-Erinfun………………………….……..............32
4.10.2 Trend of Rental values of Ijan-Ekiti…….……………………….……..............34
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary....................................................................................................................35
5.3 Conclusion ................................................................................................................35
5.4 Conclusion ................................................................................................................35
REFERENCES ...............................................................................................................36
APPENDIX I………………………………………………………………………....38
APPENDIX II………………………………………………………………………...42
CHAPTER ONE
INTRODUCTION
1.1Â Â Â Â BACKGROUND OF THE STUDY
Higher education institution is viewed as a magnet in the metropolitan area that attracts people and economic activity towards it (O‟Flaherty, 2005). In recent times, the Nigeria government have shown strong commitment to growth in higher education sector by the establishment of more institutions especially universities and polytechnics and the liberalization of its ownership. While this is the focus of the government, little or no attention is given to the provision of accommodation in the varsities and polytechnics to meet the rising student population. As a result of this, majority of the student population take solace in the rental market for alternative accommodation. The demand has resulted in the establishment of niche market because students’ market especially appears to be robust. Hence, Peacocke (1999) opined that the major characteristics of students demand is that it monopolizes the market thereby reducing supply to other tenant groups.
Anamaria and Melchior (2007) used two concepts to analyze the impacts produced by the presence of a higher institution in an area: to include magnets and enclave. The first concept used to describe the impacts of large land owners such as the polytechnic is the “magnet”. In urban terms, magnet represents a concept or metaphor which describes a territory in the metropolitan area which attracts people and economic activity towards it. Higher education institutions can be qualified as magnets since they have the power of attracting many students, faculties and staff as well as business and institutional activities to a specified region in a town. Higher education institutions, when acting as a magnet, besides attracting uses that promote urban and economic growth, attracts activities regarded as damaging by particular groups in the society (Anamaria and Melchior, 2007).
The second concept used to describe the impact of large land owners such as the polytechnics is the “enclave”. A new enclave represents a self contained place or region of the city, with uses or morphology different from the one of the surrounding neighborhood (Anamaria and Melchior, 2007). According to Perry and Wiewel (2005), a higher education institution has traditionally seen itself as an enclave, “removed enough from the immediacy and demands of modern life to produce the knowledge and information with which to better understand the society”. Depending on the externality, the role of polytechnics as magnets most times overcomes their features as enclaves. Therefore, the concepts of magnets and enclaves represent an important methodological tool in the analysis of the impacts and externalities by the universities on their neighbourhoods (Anamaria and Melchior, 2007). Universities and polytechnics primarily acquire land and structures that support their core mission or immediate growth demands, it is however not uncommon for surrounding communities to criticize universities for their unresponsive development policies or lack of a plan to mitigate negative spillover effects (Sungu-Erylimaz, 2009). For neighbourhood residents, some of the major concerns relate to quality of life issues, such as conversion of houses and other buildings to student occupancy; upward pressure on rents; adaptation of shops and facilities to student markets; and increase in traffic, noise, and parking problems (Harasta, 2008).
Higher education institutions according to Vandergrift et al (2009) are said to provide culture, high technology, recreational facilities, open space, sporting facilities, and fun. A polytechnic campus is often the focal point of a municipality. Green areas, water bodies, and open space are all common on campuses. Thus, through higher demand for this unique confluence of amenities, a campus itself may cause house prices to be 10% higher in New Jerseys (Vandergrift et al 2009). Anamaria and Melchior (2007) in the study carried out on the impact produced by the presence of higher institutions campuses on land and property values, found out that in the immediate area of influence (a radius of 1km from the campus) of the two campuses studied, land and property values were expected to be impacted by proximity of the higher institutions.
Ankali (2007) carried out a study on the impact of tertiary institutions on residential property values in the Federal Polytechnic, Ede and found out that the establishment of the polytechnic led to the influx of people into the town, thereby, making the residential property market subsector experience a moderate increase in rental values between 1994 and 1997. Another slight increase was also experienced between 1998 and 1999 and the highest rental increment was observed between 2001 and 2005. However, tenement properties close to the Polytechnic experienced the highest rental growth rate.
Owusu-Edusei, Espey and Lin (2007) established that there is a positive value associated with proximate location to schools and a negative value associated with greater than average distance from schools. The study found out that location within 800 feet, about 0.15 miles of elementary schools produces housing values from about 8% to 13% higher than houses located 800 feet to about 200 miles away, while houses located more than 2 miles from an elementary school have values about 10% less. Location within 800 feet of a middle school could increase housing values as much as 12% relative to houses 800 feet to about 2.2 miles away, while location further than 2.2 miles negatively impacts housing prices by about 18%. The study further found out that High schools are exception to this, with very close proximity generating a negative impact on surrounding residential property rental values as high schools tend to have more night time activities such as night parties, traffic e.t.c.
Shigeru, Hiroshi and Qiang (1999) carried out a study on the effects of University of Kansas on residential house values by using non-parametric assessment. Geographical information system „overlay‟ and „near‟ was used to determine the distance of each household to the institution. 6,415 residential sales were analysed. The study found out that house adjacent to the university values more than 40% higher than the comparable house located 2000meters or more away from it. It was also found out that as the distance to the university gets large, such effects initially declines rapidly and then in a more moderate pace. The study further found out that the reason for the university effect to disappear around 1800 meters is that the walking distance of 20 minutes is the maximum an average person will choose to commute on foot.
Since the inception of educational programme in Nigeria, it has been the practise of government to site campuses of tertiary institutions at the suburb of cities. This approach creates new communities which are socio-culturally different from other neighbouring cities. Communities find it difficult to exist in isolation because there is always the need and tendency for inhabitants of such communities to interact with cities in every aspect of their lives. The failure of the institution to be completely autonomous arises from the fact that these institution usually find it very difficult to provide all the necessary socio-cultural and economic infrastructures such as; housing, transportation, recreational and shopping facilities for the population.
If and when provided they become inadequate in the course of time due to increase in population and other factors, the project simply examines the higher institution as typical  motivated by the innate desire to examine the reason why the property market for residential properties in higher institution on its neighbourhood area which has been growing at higher rate as when compared to those of other towns that are in Ekiti State since the inception of higher institution like Federal Polytechnic Ado-Ekiti in 1982.
While examining the problem of students’ housing in Nigeria higher institutions, Asaju and Olanrewaju (2000) observed that the effect of students’ population growth is critical to rental value of such property whilst institutions with residential facilities cannot cope with the resultant high demand. What has happened is that students and school authorities go to town and surrounding communities to look for residential accommodation for their students.
Naturally, the supply is ever static, while the demand is ever increasing. The result segregated rental market and higher rental levels especially within the neighbouring areas of the institution
While the present situation of increasing rental values of residential accommodation in the study area can be attributed to population growth and improved standards of living, this study intends to address the impact of higher institution on rental value its neighbouring residential property market.
1.2Â Â Â Â STATEMENT OF THE PROBLEM
Massive higher education institution (HEIs) development has the possibility to effect on the housing market growth in an area. Higher education institutions create competition in the housing market and put pressure on limited housing supply in an area. This scenario makes the housing rent price and housing value increase. However, how far the housing market is affected by this attribute could be influenced by other factors (microeconomic elements) as well.
The impact of higher institution on its neighbouring residential property has remained highly problematic and this always leads to increment in residential accommodation rental values. One of the major causes of the increment problem in residential property market is attributed to population growth and inadequate residential housing for students and staffs of the polytechnic.
1.3Â Â Â Â AIM AND OBJECTIVES
The aim of this study is to examine the impact of higher institution on its neighbouring residential property market. To achieve this aim, the following objectives were pursued to;
- Determine the trend in property market that leads to increase in prices
- Identify the impact of higher institution on the property market of residential properties
- Assess the rental growth and increase in the property market
- Assess factors responsible for high property market of different classes of residential properties
- To proffer possible recommendation
1.4Â Â Â Â Â Â JUSTIFICATION OF THE STUDY
The establishment of educational institution is as diverse in its effect of rental value of residential properties. It serves as a platform to encourage individual investors to invest in real estate in such area.
Therefore, this study is of immense significance to the locations where higher institutions of learning because this study does not only affect the rental value of dwelling houses in those areas but also affects the economy of the area in term of significant impact on income and unemployment.
1.5Â Â Â Â SCOPE OF THE STUDY
Emphasis would be laid on the neighbourhood areas in Ado-Ekiti which includes only Aba-Erifun while the impact of higher institution on residential rental value would be looked into
1.6Â Â Â Â LIMITATION OF THE STUDY
Data on housing market, on sale, rent, vacant units and new built units are limited, especially for a relatively small area. No other market databases synchronize from various cities or regions, especially in numbers of capital flows. This problem is addressed by supplementing secondary data with interviews to get the information data from the stakeholders, such as student accommodation staff, property agent, landlords, and local government.
1.7Â Â Â Â SIGNIFICANCE OF THE STUDY
Higher education institutions in the study area play a big role in influencing the economy, physical planning, social development and housing growth. The findings of this study will be useful to explain the real factors of the student housing market movement in the area. This study could demonstrate the economic importance and information about the housing investment for local people and community. The findings also indicate how government and other stakeholders can assist in determining the economic impact and trends of the housing market. Finally, this study will be useful for the investor, housing property agent, future buyer, higher education institutions and government to understand the factors of housing attractiveness through the student housing market. It is the social responsibility of any government worth its name to ensure the provision of food and shelter for its citizenry. Housing shortage created by depletion in the quality and overall stock of housing relative to population and actual demand. Mainly the low-income group and poor housing in urban areas, provision has become an intractable problem in Nigeria.
As rent continues to soar high due to inflating forces in the country, the poor are left with no choice than to dance to the tune of their landlords. Bello and Asaju (2002) opined that rental values in recent times are skyrocketing and complaints from tenants are mounting daily over frequent and seemingly arbitrary increase in rent. Landlords too complain of cost of maintenance, construction and general rate of inflation.
1.8Â Â Â Â DEFINITION OF TERMS
Rental value: is the monetary return which an investment in property can reasonably be expected to command for the use of a particular property.
Value: Value is defined according to Kunle and Sunday (2007) as the amount of money which can be obtained for an interest in landed property at a particular time from persons able and willing to purchase it.
Property Market: Property market which can otherwise be called real estate market is defined as any medium where “bundles or clusters” of rights are being exchanged. It could also be a system of transaction between land owners, land users and estate agents (Esan and Olajide, 1996).
Residential Property: means an improved parcel of land devoted to or available for use as an “abode” e.g single family homes, apartment, and rooming houses. In other words, residential properties as in case of bungalows and blocks of flat as distinguished from business, commercial or industrial property.
Property: Possession and its belonging of a person, which he can deal with as he likes. However, property is the subject matter of ownership, that is, anything that belongs to a person given exclusive right to enjoy a thing, example being land and building.
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IMPACT OF THE HIGHER INSTITUTION ON ITS NEIGHBOURING RESIDENTIAL PROPERTY MARKET.docx
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IMPACT OF THE HIGHER INSTITUTION ON ITS NEIGHBOURING RESIDENTIAL PROPERTY MARKET
ABSTRACT
This project examines the impact of higher institution on its neighbouring residential property market. Part of the objectives was to identify the trend of rental values of property market located close to the higher institution. To achieve this, residents were contacted and their opinions were gotten through questionnaires issued. A total number of hundred (100) questionnaires were issued and seventy (70) were retrieved with response rate at 70%. The use of frequency distribution tables was used to analyze data and results showed that insufficient hostel accommodation has led to increase in rent of property of its neighbouring property market.
The study recommends among other things that increase in numbers of students accommodation will reduce demand pressure on available accommodation.
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study .......................................................................................... 1
1.2 Statement of the Problem ......................................................................................... 6
1.3 Aim and Objectives ...................................................................................................7
1.4 Justification of the study…………………………………………………………...7
1.5 Scope of the Study………………………………………………………...………..8
1.6 Limitations of the Study……………………………………………………………8
1.7 Significance of the study.............................................................................8
1.8 Definition of Terms.....................................................................................9
CHAPTER TWO: LITERATURE REVIEW
2.1 Concept of Property………………….…...................................................................11
2.2 Types of Residential Property……………………....................................................12
2.3 Concept of Value……………………….…..............................................................13
2.3.1 Types of Value…………………………………... ...............................................14
2.4 Theories of Rent………………………....................................................................15
2.4.1 Types of Rent………………………………….....................................................15
2.4.2 Factors affecting Rental values in Study Area…… ..............................................16
2.4.3 Determination of Rental Values…………………. ...............................................17
2.5 Student Housing Market………………....................................................................18
2.6Location and Choice of Accommodation...................................................................19
2.7 Types of Student Housing………………….............................................................19
2.8 Student Housing Demand …………………………................................................20
2.9 Housing Markets Segments………………………………………………………20
CHAPTER THREE: RESEARCH METHODOLOGY AND STUDY AREA
3.1 Introduction ..............................................................................................................22
3.2 Sources of Data Collection........................................................................…………22
3.3 Sampling Technique .................................................................................................23
3.5 Sample Frame and Size ...........................................................................................23
3.6 Method of Data Analysis …….................................................................................23
3.7 Study Area …………………...................................................................................23
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction .............................................................................................................26
4.2 Distribution of Questionnaires....................................................................................26
4.3 Respondents’ Occupation ..........................................................................................27
4.4 Types of Residential properties occupied by respondents ......................................27
4.5 Respondents’ Occupancy Status...............................................................................28
4.6Availability of infrastructural Facilities in the Study Area......................................29
4.7 Respondents’ Mode of Payment of Rent...................................................................30
4.8 Respondents’ perspective on factors that have impact on rental value……………………………………………………………….................................30
4.9 Extent of Growth of Student Housing Demand……………………...….………...31
4.10 Comparative trend of Rental values of Aba-Erinfun and Ijan-Ekiti……..............32
4.10.1 Trend of Rental values of Aba-Erinfun………………………….……..............32
4.10.2 Trend of Rental values of Ijan-Ekiti…….……………………….……..............34
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary....................................................................................................................35
5.3 Conclusion ................................................................................................................35
5.4 Conclusion ................................................................................................................35
REFERENCES ...............................................................................................................36
APPENDIX I………………………………………………………………………....38
APPENDIX II………………………………………………………………………...42
CHAPTER ONE
INTRODUCTION
1.1Â Â Â Â BACKGROUND OF THE STUDY
Higher education institution is viewed as a magnet in the metropolitan area that attracts people and economic activity towards it (O‟Flaherty, 2005). In recent times, the Nigeria government have shown strong commitment to growth in higher education sector by the establishment of more institutions especially universities and polytechnics and the liberalization of its ownership. While this is the focus of the government, little or no attention is given to the provision of accommodation in the varsities and polytechnics to meet the rising student population. As a result of this, majority of the student population take solace in the rental market for alternative accommodation. The demand has resulted in the establishment of niche market because students’ market especially appears to be robust. Hence, Peacocke (1999) opined that the major characteristics of students demand is that it monopolizes the market thereby reducing supply to other tenant groups.
Anamaria and Melchior (2007) used two concepts to analyze the impacts produced by the presence of a higher institution in an area: to include magnets and enclave. The first concept used to describe the impacts of large land owners such as the polytechnic is the “magnet”. In urban terms, magnet represents a concept or metaphor which describes a territory in the metropolitan area which attracts people and economic activity towards it. Higher education institutions can be qualified as magnets since they have the power of attracting many students, faculties and staff as well as business and institutional activities to a specified region in a town. Higher education institutions, when acting as a magnet, besides attracting uses that promote urban and economic growth, attracts activities regarded as damaging by particular groups in the society (Anamaria and Melchior, 2007).
The second concept used to describe the impact of large land owners such as the polytechnics is the “enclave”. A new enclave represents a self contained place or region of the city, with uses or morphology different from the one of the surrounding neighborhood (Anamaria and Melchior, 2007). According to Perry and Wiewel (2005), a higher education institution has traditionally seen itself as an enclave, “removed enough from the immediacy and demands of modern life to produce the knowledge and information with which to better understand the society”. Depending on the externality, the role of polytechnics as magnets most times overcomes their features as enclaves. Therefore, the concepts of magnets and enclaves represent an important methodological tool in the analysis of the impacts and externalities by the universities on their neighbourhoods (Anamaria and Melchior, 2007). Universities and polytechnics primarily acquire land and structures that support their core mission or immediate growth demands, it is however not uncommon for surrounding communities to criticize universities for their unresponsive development policies or lack of a plan to mitigate negative spillover effects (Sungu-Erylimaz, 2009). For neighbourhood residents, some of the major concerns relate to quality of life issues, such as conversion of houses and other buildings to student occupancy; upward pressure on rents; adaptation of shops and facilities to student markets; and increase in traffic, noise, and parking problems (Harasta, 2008).
Higher education institutions according to Vandergrift et al (2009) are said to provide culture, high technology, recreational facilities, open space, sporting facilities, and fun. A polytechnic campus is often the focal point of a municipality. Green areas, water bodies, and open space are all common on campuses. Thus, through higher demand for this unique confluence of amenities, a campus itself may cause house prices to be 10% higher in New Jerseys (Vandergrift et al 2009). Anamaria and Melchior (2007) in the study carried out on the impact produced by the presence of higher institutions campuses on land and property values, found out that in the immediate area of influence (a radius of 1km from the campus) of the two campuses studied, land and property values were expected to be impacted by proximity of the higher institutions.
Ankali (2007) carried out a study on the impact of tertiary institutions on residential property values in the Federal Polytechnic, Ede and found out that the establishment of the polytechnic led to the influx of people into the town, thereby, making the residential property market subsector experience a moderate increase in rental values between 1994 and 1997. Another slight increase was also experienced between 1998 and 1999 and the highest rental increment was observed between 2001 and 2005. However, tenement properties close to the Polytechnic experienced the highest rental growth rate.
Owusu-Edusei, Espey and Lin (2007) established that there is a positive value associated with proximate location to schools and a negative value associated with greater than average distance from schools. The study found out that location within 800 feet, about 0.15 miles of elementary schools produces housing values from about 8% to 13% higher than houses located 800 feet to about 200 miles away, while houses located more than 2 miles from an elementary school have values about 10% less. Location within 800 feet of a middle school could increase housing values as much as 12% relative to houses 800 feet to about 2.2 miles away, while location further than 2.2 miles negatively impacts housing prices by about 18%. The study further found out that High schools are exception to this, with very close proximity generating a negative impact on surrounding residential property rental values as high schools tend to have more night time activities such as night parties, traffic e.t.c.
Shigeru, Hiroshi and Qiang (1999) carried out a study on the effects of University of Kansas on residential house values by using non-parametric assessment. Geographical information system „overlay‟ and „near‟ was used to determine the distance of each household to the institution. 6,415 residential sales were analysed. The study found out that house adjacent to the university values more than 40% higher than the comparable house located 2000meters or more away from it. It was also found out that as the distance to the university gets large, such effects initially declines rapidly and then in a more moderate pace. The study further found out that the reason for the university effect to disappear around 1800 meters is that the walking distance of 20 minutes is the maximum an average person will choose to commute on foot.
Since the inception of educational programme in Nigeria, it has been the practise of government to site campuses of tertiary institutions at the suburb of cities. This approach creates new communities which are socio-culturally different from other neighbouring cities. Communities find it difficult to exist in isolation because there is always the need and tendency for inhabitants of such communities to interact with cities in every aspect of their lives. The failure of the institution to be completely autonomous arises from the fact that these institution usually find it very difficult to provide all the necessary socio-cultural and economic infrastructures such as; housing, transportation, recreational and shopping facilities for the population.
If and when provided they become inadequate in the course of time due to increase in population and other factors, the project simply examines the higher institution as typical  motivated by the innate desire to examine the reason why the property market for residential properties in higher institution on its neighbourhood area which has been growing at higher rate as when compared to those of other towns that are in Ekiti State since the inception of higher institution like Federal Polytechnic Ado-Ekiti in 1982.
While examining the problem of students’ housing in Nigeria higher institutions, Asaju and Olanrewaju (2000) observed that the effect of students’ population growth is critical to rental value of such property whilst institutions with residential facilities cannot cope with the resultant high demand. What has happened is that students and school authorities go to town and surrounding communities to look for residential accommodation for their students.
Naturally, the supply is ever static, while the demand is ever increasing. The result segregated rental market and higher rental levels especially within the neighbouring areas of the institution
While the present situation of increasing rental values of residential accommodation in the study area can be attributed to population growth and improved standards of living, this study intends to address the impact of higher institution on rental value its neighbouring residential property market.
1.2Â Â Â Â STATEMENT OF THE PROBLEM
Massive higher education institution (HEIs) development has the possibility to effect on the housing market growth in an area. Higher education institutions create competition in the housing market and put pressure on limited housing supply in an area. This scenario makes the housing rent price and housing value increase. However, how far the housing market is affected by this attribute could be influenced by other factors (microeconomic elements) as well.
The impact of higher institution on its neighbouring residential property has remained highly problematic and this always leads to increment in residential accommodation rental values. One of the major causes of the increment problem in residential property market is attributed to population growth and inadequate residential housing for students and staffs of the polytechnic.
1.3Â Â Â Â AIM AND OBJECTIVES
The aim of this study is to examine the impact of higher institution on its neighbouring residential property market. To achieve this aim, the following objectives were pursued to;
1.4Â Â Â Â Â Â JUSTIFICATION OF THE STUDY
The establishment of educational institution is as diverse in its effect of rental value of residential properties. It serves as a platform to encourage individual investors to invest in real estate in such area.
Therefore, this study is of immense significance to the locations where higher institutions of learning because this study does not only affect the rental value of dwelling houses in those areas but also affects the economy of the area in term of significant impact on income and unemployment.
1.5Â Â Â Â SCOPE OF THE STUDY
Emphasis would be laid on the neighbourhood areas in Ado-Ekiti which includes only Aba-Erifun while the impact of higher institution on residential rental value would be looked into
1.6Â Â Â Â LIMITATION OF THE STUDY
Data on housing market, on sale, rent, vacant units and new built units are limited, especially for a relatively small area. No other market databases synchronize from various cities or regions, especially in numbers of capital flows. This problem is addressed by supplementing secondary data with interviews to get the information data from the stakeholders, such as student accommodation staff, property agent, landlords, and local government.
1.7Â Â Â Â SIGNIFICANCE OF THE STUDY
Higher education institutions in the study area play a big role in influencing the economy, physical planning, social development and housing growth. The findings of this study will be useful to explain the real factors of the student housing market movement in the area. This study could demonstrate the economic importance and information about the housing investment for local people and community. The findings also indicate how government and other stakeholders can assist in determining the economic impact and trends of the housing market. Finally, this study will be useful for the investor, housing property agent, future buyer, higher education institutions and government to understand the factors of housing attractiveness through the student housing market. It is the social responsibility of any government worth its name to ensure the provision of food and shelter for its citizenry. Housing shortage created by depletion in the quality and overall stock of housing relative to population and actual demand. Mainly the low-income group and poor housing in urban areas, provision has become an intractable problem in Nigeria.
As rent continues to soar high due to inflating forces in the country, the poor are left with no choice than to dance to the tune of their landlords. Bello and Asaju (2002) opined that rental values in recent times are skyrocketing and complaints from tenants are mounting daily over frequent and seemingly arbitrary increase in rent. Landlords too complain of cost of maintenance, construction and general rate of inflation.
1.8Â Â Â Â DEFINITION OF TERMS
Rental value: is the monetary return which an investment in property can reasonably be expected to command for the use of a particular property.
Value: Value is defined according to Kunle and Sunday (2007) as the amount of money which can be obtained for an interest in landed property at a particular time from persons able and willing to purchase it.
Property Market: Property market which can otherwise be called real estate market is defined as any medium where “bundles or clusters” of rights are being exchanged. It could also be a system of transaction between land owners, land users and estate agents (Esan and Olajide, 1996).
Residential Property: means an improved parcel of land devoted to or available for use as an “abode” e.g single family homes, apartment, and rooming houses. In other words, residential properties as in case of bungalows and blocks of flat as distinguished from business, commercial or industrial property.
Property: Possession and its belonging of a person, which he can deal with as he likes. However, property is the subject matter of ownership, that is, anything that belongs to a person given exclusive right to enjoy a thing, example being land and building.
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