Correlation between Environmental Variables and Rental Values of Residential Properties in Greater Port Harcourt City, Rivers State, Nigeria

Abstract

Property value is a function of many factors. It is a common knowledge that environmental variables and the influence of location externalities are vital to the formation of residential property value. The study assesses the relationship between environmental variables and rental value of residential properties in Greater Port Harcourt City, Rivers State.  Data was collected from both primary and secondary sources. In a wider perspective, data was collected through questionnaires, interviews, document reviews and field observations. A total of 450 out of 500 copies of questionnaires administered to the residents was retrieved while 78 was retrieved out of 116 copies of questionnaires administered to the Professional Estate Valuers managing residential properties within the study area. Questionnaire was distributed on the basis of household population in the study area and stratified systematic sampling approach was adopted in the selection of 500 (residents) respondents. Data analysis techniques used include mean, standard deviation and spearman rank correlation. Three research questions were formulated and one hypothesis tested at 0.01 and 0.05 level of significance.  Findings revealed that there is a relationship between environmental variables and rental value of residential properties.  Secondly, the study showed environmental variables that negatively influence residential property value include floodwater, air pollution, waste dumpsite, traffic congestion, noise pollution and wetland in the study area. Based on the findings, recommendations were made among which is the need for the creation of awareness and public sensitization on environmental issues with potential adverse effect on property values and living standard was also recommended.  Essentially, the study will be beneficial to students, property developers, local planning authorities of Rivers State in regulating development and housing for the infrastructural development in the State.