Project – An appraisal of urban rent determinants in Bukan-sidi

CHAPTER ONE

1.0   INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Shelter is one of the most important commodities of human existence in conjunction with food and clothing. Human beings care for shelter as the improve standard of living moves above the subsistence level.

The provision of residential property has been the most important priority in human race before the emergence of industrial, commercial and recreational property. In some years back, the demand for residential properties in Bukan Sidi was minimal, rent paid by tenants of different apartment in the area is lower due to the absence of some common convenience services like good water system, good electricity, adequate fittings, good waste management system, good ventilation system in the building technique, which were as a result of nonexistence of the institution in the past.

But with the citing of the Nasarawa State Polytechnic Lafia, and other institutions such National Open University, Ministry of Agriculture, Ministry of Education, Lafia Township stadium and the location of Bukan Sidi close to the capital city brought the inflow of people into the area is consequently leading to increase in the amount of rent paid when compared to previous period. This is because high level of competition among individuals desiring to have accommodation in the area and are mostly students and civil servants.

However, before the advent of these institutions and , a one bedroom single apartment used to be rented at the rate of five thousand naira (#5,000) but as the existence of the institutions and organizations into the area, the rent is payable for similar property in the same location is twenty thousand naira (20,000) while a two bedroom self contained that used to be anxious rented at the rate of twenty thousand (20,000) now has increased to fifty thousand naira (50,000) these rapid increase in rent which all these are as a resulted from massive increase in the number of people living in the area who are both students and members of the public, due to the availability of the services mentioned above for their benefit within the arena.

Meanwhile, the higher the increase in population, the higher the demand for accommodation hence, the higher the rent chargeable at the expense of relatively low supply.

Therefore, increase in population simply means growth in population or number of people living in a particular geographical location over a number of years. And rent determination in the other hand, is the estimation of capital value of a property from an investment point of view, which a prospective tenant can afford to pay for the property’s occupation.

So a rent of a property can be determined higher when there is increase in number of people at a particular area who are demanding for such property at that present time. With this, we can say that the amount of rent paid at presently in Bukan Sidi is relatively high in comparison with other areas in Lafia Metropolis.

1.2   STATEMENT OF THE PROBLEM

As a result of the increase in the growth of population in the research area, certain people are found commonly associated with problem in the area with most unserious inhabitations.

However, these problems are either as a result of mismanagement from the part of the occupiers or narrow supply of the demanded property in the area which brought about competition among individuals who are so anxious or desperate for renting accommodation for themselves in whatever circumstances. As such situation, nobody cares to check the necessary facilities to provide comfortable service and effectiveness of the house to meet its functional requirement.

Rapid urban growth is making more people reliant on rental housing for accommodation but housing production levels are not meeting demand either in terms of quantity or quality.

Existing policies and laws do not cater sufficiently for the production of housing units, especially in the rental housing market. The rental market is further distorted by rent control and housing subsidies from government agencies and local authorities.

There is a great deal of abuse of tenancy rights, including arbitrary rent increases and evictions, especially in informal tenancies, which urgently need addressing through policy and law reform.

This study therefore sought to establish various factors influencing the rent rates in Bukan-sidi Lafia metropolis.

1.3   AIM/OBJECTIVES OF THE STUDY

The study aimed at assessing the determinant of Urban Rent in Bukan Sidi, Lafia Metropolis.

The objectives of the study are:

• To determine how location of apartments and their proximity to the city influence rent rates in Bukan Sidi Lafia.
• To establish the influence of cost of construction on rent rates in Bukan Sidi Lafia.
• To assess the influence of structural characteristics of houses on rent rates in Bukan Sidi Lafia.
• To assess the level of increase of population in Bukan Sidi, Lafia.
• To determine the role of increasing population to rent determination
• To assess the demand on properties to let in Bukan Sidi, Lafia Metropolis.

1.4   RESEARCH QUESTIONS

The following questions shall be examined with a view to finding answers that will benefit the study area (Bukan-sidi Lafia Metropolis).

1. What is the influence of population increase on rent rates in Bukan sidi Lafia?
2. How does location of apartments and their proximity to the city influence rent rates in Bukan-sidi Lafia?
3. In what ways does cost of construction influence rent rates in Bukan-sidi Lafia?
4. What is the influence of structural characteristics of houses on rent rates in Bukan-sidi?
5. How does supply of housing influence rent rates in Bukan-sidi Lafia Metropolis?

1.5   SCOPE AND LIMITATION OF THE STUDY

The researcher has decided to limit the scope of the study to Bukan-sidi Lafia Metropolis. This is because the researcher feels it is possible to a large extent to obtain all the required information needed in drawing up conclusion on this study.

The study will concentrate on Urban Rent Determinant in Bukan-sidi Lafia Metropolis.

1.6   SIGNIFICANCE OF THE STUDY

1. The study shall be significant to people who let properties in Bukan Sidi, Lafia Metropolis as they will be in a position to understand their rights regarding leave.
2. The study will be beneficial to investors who are interested in investing in property; the study shall open their minds to issues affecting people living in rental houses, which is essential in making investment decisions. Through this study, the investors and the general public will be able to know and understand government policies and regulations regarding housing which can impact their investment decisions.
3. The study would benefit the government in developing policies and strategies that are directed towards enhancing good housing facilities to its citizens.
4. The research findings will also provide vital information that will benefit future academicians and researchers on the factors determining rent rates, which will trigger their desire to research further.
5. The understanding of increase in population in Bukan-sidi Lafia is vey essential because it will provide the basis for relating it to rental determination.

1.7   BACKGROUND OF THE STUDY AREA (BUKAN-SIDI, LAFIA)

Bukan Sidi Lafia was founded in the year 1906 by Lewa, Eku and Atso who migrated from Azuba as a result of hunting and farming activities.

Lewa is the first District Head of Bukan Sidi between 1948–1973, which later die and Mamman took over between 1973 – 1989 and then the present District Head took over between 1989 till date.

Bukan Sidi is a fast growing area which gathered much in transformation process from rural setting to urban setting due to its location close to Lafia City.

The level of her socio-economic advancement has been on the increase in recent times as various social and educational activities.

The native are however, typically subsistence farmer and civil servant due to the availability of employment opportunity in the area like the Lafia Township Stadium, Ministry of Education, Ministry of Land and Survey, major secondary schools etc.

Project – An appraisal of urban rent determinants in Bukan-sidi