Rental Analysis of Residential Properties in Close Proximity to the Federal University of Technology, Akure, Nigeria

Abstract

This research analyzed the rental values of residential properties within the neighbourhood of the Federal University of Technology, Akure (FUTA). It examined among others the relationship between students’ population off-campus and the rental values of proximate residential properties, and the factors that influence the rental values of residential properties within the neighbourhood of the institution. The data for the study was collected through structured questionnaires from twenty (20) registered Practicing Estate Surveyors and Valuers in Akure and from the Student Affairs Division of FUTA. The data collected were analyzed using Descriptive Statistics (Weighted Mean Scores and frequency tables and graph) and Inferential Statistics (Correlation Coefficient). The study revealed that the major factors often discovered from relevant literature to determine rental values of residential properties such as facilities and condition of repairs among others were the least ranked within the neighbourhood of FUTA. The study also revealed that there was a positive relationship between the population of students of FUTA living in the private rented sector and rental values of selected residential properties over the years. This indicates that demand pressure from students and residents contribute immensely to the changes in rental values within the area. It is therefore recommended that government and higher educational institutions should be encouraged to make a clear and definite statement concerning the provision of on-campus accommodation. Also, likely impacts of higher educational institutions on local rental market should be integral to the establishment and expansion plans of every higher institution.

Keywords: Higher Educational institution, Proximity, Residential Property, Rental Values.