Effects of Environmental Features and Qualities on Rental Values of Residential Properties in Kaduna Metropolis

Abstract

Concerns have been expressed over the years regarding the negative impact of environmental externalities on property values. Environmental quality has potentially significant effects on environments and their populations, thus it is important to understand its drivers and how to measure them. The aim of this study is to develop a model for measuring the effects of environmental quality on rental values of residential properties in Kaduna Metropolis with a view to establish the most sustainable attributes that significantly contribute to change in rental values in order to guide in making the best real estate investment decisions. The study adopted quantitative research approaches and survey strategy because of the nature of the research questions with a sample size of 320. Structured questionnaires were distributed to the respondents. The data was analysed using mean ranking, frequency distribution tables and multiple regression analysis. The result revealed that, the average (Mean) rent paid in different types of rented residential properties in Ungwan Rimi, Kaduna metropolis, Nigeria, stands for flat ₦436,093, bungalow ₦547,043 and tenement ₦116,083. Meanwhile, the study found that the two independent variables (LPS and ECS) were statistically significant. The overall model performance showed an R-squared of approximately 64.26%, indicating that the independent variables collectively account for a proportion of the total variation observed in the (rent). The study concludes that property owners/developers should continue to prioritise regular maintenance and timely repairs of fundamental property elements, as this ensures tenant satisfaction, increases turnover, and protects property value over time. The study recommends that property owners/developers should continue to prioritize regular maintenance and timely repairs of fundamental property elements, as this ensures tenant satisfaction, increases turnover, and protects property value over time and to strategically invest in upgrading and maintaining flooring and ceilings to enhance interior aesthetics, boost perceived quality, and increase the desirability and potential rental value of their properties.