TRENDS IN RENTAL VALUE OF RESIDENTIAL PROPERTY IN AN EMERGING STATE CAPITAL
This study investigated the variation and prospects of property value appreciation as a result of population growth and urbanisation. This demonstrates that there are numerous elements that influence trends in the rental value of residential homes.
These considerations include the property's location, changes in building prices, changes in the national situation, and demographic changes. These investigate the research area of the trends in rental value of residential property in Osogbo increased considerably, resulting in a significant improvement in the socioeconomic lives of the people in Osogbo.
The first chapter provides thorough and wide information on the study and its background. The study's aim and objective, significance, breadth, research technique, and limitations were all explored.
The second chapter is based on a literary review in which the conceptual framework of the trend in residential property value is thoroughly examined.
The third chapter is based on the research methods of the studied area. Chapter four examined data presentation and analysis using questionnaires and personal interviews as data or information collection methods. The fifth chapter discussed the summary of findings, recommendations, conclusion, and references.
1.1 BACKGROUND OF THE STUDY
In the case of real estate, value follows the same economic laws as the values of other goods and services. As a result, the value of real estate is based on the law of demand and supply, exactly as the price of a commodity in the market. The study's other guiding elements that govern the residential property market will also be emphasised.
The worth of a thing in exchange is referred to as its value. The money worth that would accrue to the lessor will be an inverse function of the value of demand, long time age, particularly during the days of the oil boom,
the property market of the area was dull since people preferred to construct rather than let or lease because building costs were low. However, the study area's property market has seen steady shifts in rental value during the last decade.
The nature of this transition will be the subject of this study, as will the concept of property values, variables influencing property values, and some other related topics.
Various elements that can cause changes in residential property prices were considered, and a graphical depiction was created that demonstrated significant changes in their rental values when compared to the current year.
Osun became a state on August 27, 1991, during President Ibrahim Babaginda's sixth year anniversary broadcast. The state was one of nine new states established in Nigeria in 1991, the others being Abia, Kebbi, Kogi, Delta, Jigawa, Enugu, Yobe, and Taraba.
Previously, the state was a part of the Old Western Region, then of the Old Oyo state, before becoming a state in its own right. Most towns and villages in osun state today are as old as the country itself.
Osogbo is the state capital, and there are thirty local government councils in all. Osogbo, Ilesah, Ile-Ife, Ede, Ilaorangun, and Egigbo are among the major towns in Osun state.
The state has an area of 86002 square kilometres and borders Kwara to the north. Oyo is located in the west, Ogun and Ondo in the south, while Ekiti is located in the east.
According to the 1991 national census, the state population was 1,144,907 males and 1,193,663 females. With a population density of 233, the total population in 2006 was 3,423,535 with a population density of 379, and the present population density is 4,000,000.
Prior to its establishment as the state capital, Osun State did not have a large population, but since its establishment as the state capital, the population has grown and many environmental, economic, and development changes have occurred, resulting in the establishment of banks and industries,
which have led to the growth and expansion of the state, an increase in rental value, and a significant change in the physical and economic activities in the state. The state was endowed with an abundance of natural resources, including gold, clay, limestone, and granite.
The state has a tropical climate, and the local natural vegetation is lowland rainforest.
Both co-founders, Owa Laorooye (Laro) and Oguntimehin (Timehin), came from Ipole, the original farmhouse of the initial inhabitants, between 1650 and 1700.
Timehin was an excellent hunter. He led multiple journeys into the Osun woodland, where he discovered the Osun River, whose water never dried up throughout the year. Timehin was intrigued by the existence of the Osun River and other physical elements of the area.
Back at Ipole (about 12 kilometres from the Osun River and suffering from acute water scarcity), he told Owa Laorroye about his journey, discoveries, and certainty that if they relocated to the area, the water scarcity problem would be remedied. Laro, Timehin, and their people left Ipole to settle near the Osun River after much contemplation.
According to legend, a voice complained and implored when a tree fell into the historic River. You have broken all my dyeing pois, Spirit of the Forest, so move power from here so that you may prosper. Aro and Timehin were reported to have replied in terror, Osogobo ode o, which translates as “forest spirit sorry.”
The two men mistook the voice for that of the goddess Osun. From that day forward, the settlers referred to their home as Osogbo, which was later shortened to OSOGBO. The Osogbo people first settled around where the Osun River is now revered.
Following the complaint and advice of the Osun goddess, the initial settlers, Oba Larooye and Timehin, and their people relocated uphill to where the first historic palace in Osogbo is presently located.
1.2 PURPOSE OF THE STUDY
The purpose of this research is to look at the trends in the rental value of residential properties since the formation of Osun state.
1.3 OBJECTIVES OF THE STUDY
To determine the numerous elements that contribute to changes in the rental value of residential buildings.
To investigate the rental value of residential units in the research region.
to discover numerous issues impeding the performance of residential units in the research region.
at make recommendations and come at a conclusion.
1.4 JUSTIFICATION FOR THE STUDY
When assigning a rental value to any collection of property, the future degree of productivity of the property has become important. One of the most important factors for developers is the rental feature level.
A small bit of balance in prediction can have a significant impact on a project's success or failure. This is vital as a reference to the profitability of a development programme because feature levels of money generated from the property must be highly given.
This requires taking into account any decisions that affect the feature. However, before this can be done, it is required to account for potential conditions. Since the current rental on investment mostly aims at meeting the owner's feature wants.
Because residential property is more or less dynamic in nature, a study of past trends in the market would serve as beneficial guidelines to the entire state, be it investors.
This allows both public and private developers to understand how their concept fits into the overall future development of the sub-growing urban region.
The study of trends in property values, particularly residential property, is critical to the estate management industry. An grasp of property value patterns is critical for assessment or valuation purposes.
This is because it serves as a useful guide and can be used to forecast revenue generation for the state or local government. understanding the trends in rental value of a property,
particularly residential property, can be used to determine the capital value of the property in the near future, as well as the actual rent to be taken by the landlord, if an accurate trend can be obtained.
1.5 SCOPE OF THE STUDY
Essentially, the project proposes to investigate trends in the rental value of residential property in the state. Despite the fact that the estate belongs to the government, which has a vested interest in the individuals who created the property. The landlords that pay the corporation a yearly ground fee now rent out their property for years.
This research will conduct a rigorous examination of the factors and processes that cause changes in the rental value of residential buildings.
1.6 METHODOLOGY OF RESEARCH
Data and other key materials were collected in the following methods during the course of this study:
Bibliography of relevant books and journals
Within the research region, an oral interview was conducted in connection with the study.
The research area was surveyed on the ground.
1.7 LIMITATIONS OF THE STUDY
The main issue we encountered was that Osogbo is a large area with many estate surveyor and value firms located within a short distance of each other, requiring us to trek from one firm to another, and that some of the estate surveyors and values were unwilling to answer the oral interview due to their busy schedules.