Trends in the Rental Values of Residential Properties Proximate to Tertiary Institutions: The Case of Federal Polytechnic Ede, Nigeria

Abstract

The aim of this study is to assess the trend of residential properties proximate to Federal Polytechnic Ede, Nigeria with a view to providing information for real estate investment decisions. The study was carried out by means of questionnaire survey. The population for the study consisted of Estate Surveyors and Valuers, Landlords, and the staff of the Management Information System (MIS) Unit of the Federal Polytechnic Ede. The areas covered for this study includes Agbale, Rombay, Ogberin and main gate areas which are neighborhoods proximate to the institution. Both descriptive statistical tools such as percentages, weighted mean scores and averages as well as inferential statistical tools such as correlation and regressions models were used in analysis of the data obtained. The study found that there was a steady and consistent increase in students’ enrolment from 2007 to 2016. Similarly there was a significant increase in the rental values of residential properties in the neighborhoods around the institution. Both the correlation and regression analysis showed a significant positive relationship between students’ enrolment and the rental values of residential properties in the study area.  The implication of this is that investors in the real estate sector could consider investing in properties proximate to such institutions so as to address the mismatch between supply and demand for students’ accommodation and enjoy high returns on investments.

Keywords: Investment, property, proximate, rent, residential, students.