Effect of Micro Economic Factors on Residential Property Value in Birnin Kebbi, Kebbi State, Nigeria

Abstract

The research aims to assess the microeconomic factors affecting residential property values in Birnin Kebbi. Property serves as an asset for any individual, as real estate is one of life's primary goals. Besides the need to eat and drink, property also plays a crucial role in daily life. Property values are influenced by various factors, which can be either microeconomic or macroeconomic in nature, or both. Many microeconomic variables are related to property attributes and buyer demographic profiles. To achieve this aim, two objectives were formulated: (i) to examine the types of property and microeconomic factors affecting property values in the study area, and (ii) to assess the effect of microeconomic factors on residential property values. Both primary and secondary sources of data were used for data collection. Out of 377 questionnaires administered, 321 were retrieved. Simple random sampling and stratified random sampling methods were employed. Quantitative methods were used for data analysis, and all data gathered were analysed using descriptive statistics and the Likert scale. The study found that physical characteristics of residential properties, such as types of materials used, building design, room sizes, parking spaces, building age, and landscape, significantly influence property values. Additionally, the types of finishes (roofs, walls, ceilings, and floors), infrastructural facilities, and social amenities (number of toilets, electricity fittings, waste disposal and sewage, potable water supply, and various sanitation facilities) also play a role. The effects of microeconomic variables on property values in the study area include insecurity, increased traffic, property price changes, nuisances, environmental quality, property demand, and time consumption. The study recommends that prospective property developers ensure the use of standard building finishes to maximize returns on their investment in property value. Additionally, the government should introduce policies to ease difficulties in importing housing materials and promote the manufacture of local ones.