This study examined the fluctuation and prospects of values
appreciation on properties, which is due to population increases
urbanization. This has shown that there are many factors that
determined trends in rental value of residential properties. These
factors include location of the property, changes in building costs, the
national situation change, change in population. These examine the
study area of the trends in rental value of residential property in
Osogbo increased tremendously and this has brought about a great
improvement on the socio economic life of the people at Osogbo. Chapter
one, contains a detailed an broad information of the study and its
background. The aim and objective, significance of the study, scope of
the study, research methodology and limitation were also discussed.
Chapter two is based on the literate review in which the conception
frame works of the trend in residential property value was really
discussed. Chapter three, these based on research methodology of the
study area. Chapter four, discussed about the presentation of the data
and the analysis of data using questionnaire and personal interview as a
source of collecting data or information. Chapter five discussed
summary of findings, Recommendation, conclusion and References.
TABLE OF CONTENT
Title page i
Table of content vi
1.0 Introduction 1
1.1 Background of the study 1
1.2 Aim of study 3
1.3 Objective of study 3
1.4 Significance of the study 3
1.5 Scope of the study 4
1.6 Research Methodology 4
1.7 Limitation of the study 4
2.0 Conceptual framework 5
2.1 Concept of value 5
2.2 Types of value 6
2.3 Residential property 8
2.4 Types of residential property 8
2.5 Rent 9
2.6 Types of rent 10
2.7 Real Estate and market 11
2.8 The real property market 11
2.9 Characteristics of real property 12
2.10 Determination of rental value of property 13
2.11 Price determination in property market 15
2.12 Factors affecting property values. 15
3.0 Research Methodology 17
3.1 Sources of data 17
3.2 Method of gathering data 18
3.3 Research instruments 19
3.4 Method of data presentation and analysis 20
4.0 Data presentation and analysis 22
4.1 Factors that responsible for the trends in rental value 27
5.0 Summary of findings, recommendation, and conclusion. 29
5.1 Summary of findings 29
5.2 Implications of findings 29
5.3 Recommendation 29
5.4 Conclusion 30
1.1 BACKGROUND OF THE STUDY
As far a real estate is concerned, value goes with the same economic
laws as values of other goods and services. Therefore, value of real
estate relates its basis to the law of demand and supply just as price
of commodity in the market. The other underlining factors that guide
residential property market in the study shall also be highlighted.
Value is the worth of and article in exchange. The money worth that will
accrue to the lesser will be and inverse function of the value of
demand, long time age especially in the days of oil boom, the property
market of the area was dull because people prefer to build than to let
or lease because building cost was cheap. But, in the decade the
property market of the study area has experienced gradual changes in
The nature of this change is the focus of this project, the concept
of values of property factors affecting property values and some other
related topics will be treated
Various factors that can being about changes in residential property
values and a graphical representation was made which showed a monumental
changes in their rental values when compared the present year.
Osun became state in August 27th 1991 in the sixth year anniversary
broadcasting of President Ibrahim Babaginda. The state was one of the
Nigeria new states created in 1991 others are Abia state, Kebbi state,
Kogi state, Delta state, Jigawa state, Enugu state, Yobe state and
Taraba state. Before this time, the state was part of old western Region
and later became part of the Old Oyo state before it finally became a
state today. Most of the towns and villages in Osun State of today are
as the country itself
The state capital is Osogbo with a total number of thirty local
government councils. Among the major towns in Osun state are Osogbo,
Ilesah, Ile-Ife, Ede, Ilaorangun and Egigbo among others. The state has a
total land of 86002 square kilometers and share boundary with Kwara in
the North. Oyo in the west, Ogun and Ondo in the South and Ekiti in the
The national figure of 1991 put the state population as 1,144,907
Male and 1,193,663 Female. With the population density of 233 and in
2006, the total population is 3,423,535 with the population density of
379 and the current population density is 4,000,000.
Before the inception as the state capital does not harbor much number
of people but since the inception as the state capital the number of
people increased and many environment, economics and development changes
occurred hence, the introduction of banks and industries spring up
which lead to the growth and expansion of the state, the rental value
increases to a great change to the physical and economic activities in
Osun State. The state was blessed with abundant deposited of natural
resources such as Gold, Clay, Limestone and Granite.
The state expansion of tropical climate while the local natural vegetation is the lowland rainforest types.
Owa Laorooye (Laro) and Oguntimehin (Timehin) both co-founders came
from Ipole, the original homestead of the earliest settlers, around 1650
Timehin was a great hunter. He had mad e several expeditions to the
Osun forest during which he discovered Osun River whose water never
dried throughout the year. The presence of Osun River and other physical
features of the area impressed Timehin. Back at Ipole (located some 12
kilometers from Osun River and which had been experiencing acute water
shortage), he informed Owa Laorroye of his adventure, discovery and
conviction that if they shifted their abode to the area, the problem of
water shortage would be solved. After due consideration, Laro, Timehin
and their people left Ipole to settle along Osun River.
Legend has it that when a tree fell into the historic
River, a voice complained and pleaded. Spirit of the forest you have
broken all my dyeing pois move power from here so that you may prosper.
Aro and Timehin were said to have replied in fear Osogobo ode o, which
translate into the spirit of the forest sorry. The two men believed the
voice to be that of the Osun goddess. From that day, the settlers called
their abode Osogbo which was perfected to OSOGBO. The spot where Osun
River is worshipped today was where Osogbo people first settled.
Following the Osun goddess complaint and Advice, the first settlers Oba
Larooye and Timehin and their people moved upwards as directed to where
the first historic palace in Osogbo is now situated.
1.1 AIM OF THE STUDY
The aim of study is to examine the trends in the rental value of residential properties since the creation of Osun state.
1.3 OBJECTIVES OF THE STUDY
- To identify various factors that responsible for trends in rental value of residential properties
- To examine the rental value of residential properties in the study area.
- to identify various problems militating against the performance of residential properties in the study area.
- To make recommendations and conclusion.
1.4 JUSTIFICATION OF THE STUDY
In ascribing any rental value to any set of property the future level
of productivity of the property have became a thing of significance. So
one of the things to which the developers are most sensitive is the
feature level of rental. A small amount of the balance in prediction can
have great effect in the success or failure of a project. This as a
guide to viability of a development scheme, it is important that feature
levels of income generated from the property must be highly granted.
In doing this, decision which affects the feature has to be taken
into consideration. But before this can be done, it is necessary to make
allowance for condition that would show ahead. Since current rental on
investment as mainly aims at meeting feature needs of the owner.
Residential property in its nature is more or less dynamic thus a
study of past trends of the property in the market would serve as a
useful guidelines to the whole state be it investors. This enable public
as well as private developer know how their scheme fit into future
development of the sub-growing urban area as a whole.
The study of trends of property values most especially residential
property is of great importance to the estate management profession. An
understanding of trends on property value is great importance for their
being assessment purpose or valuation.
This is because it provides a good guide and it can be used for
projecting such things as revenue generation, either for the state or
local government. An understanding of the trends in rental value of a
property, particularly residential property, in most cases it can also
be used to determines the capital value of the property in the nearest
future and also the actual rent to be taken by the landlord, could be
determined if an accurate trend can be got.
1.5 SCOPE OF THE STUDY
Basically, the project propose to examine the trends in rental value
of residential property within the state. Although the estate belongs to
the Government which ahs vested interest into the individuals who
developed the respective property. The respective landlords who pay the
corporation an annual ground rent now lets out their property for over
In this project a critical examination will being made on the
responsible factors and forces causing changes in rental value of
1.6 RESEARCH METHODOLOGY
During the course of this study, data and other important materials were collected in the following ways,
- Reference to relevant books and journals
- Oral interview in connection with the study was carried out within the study area.
- Field survey of the study area.
1.7 LIMITATION OF THE STUDY
The major problem we encountered was that Osogbo is a large area with
many estate surveyor and value firm, location at relating short
distance from each other as had to result to trekking from one firm to
another and also some of the estate surveyors and values were not
willing to answer the oral interview conducted because of their tight