Proximity to Retail Outlets and Residential Property Rental Values in Akure, Nigeria
DOI:
https://doi.org/10.11113/intrest.v20n1.432Keywords:
Residential neighborhood, Rental prices, Retail attachmentAbstract
Location and neighbourhood characteristics are important factors to consider in real estate investment, as the composition of the physical and locational environment can influence the extent of desirability. This study examines the effect of the attachment of retail shops on residential property rental prices. Using a cross-sectional survey research, this study divided Akure into three population density zones to assess how the contiguous development of attached retail shops affects residential rental prices in each of the zones. Independent sample T-test was used to compare the residential property rental prices across the zones. Results of the analysis revealed that in the high population density zone, there is no statistically significant difference in the rental prices of residential properties with retail shop attachment and those without retail shop attachment. In the medium-density zone, it was revealed that the rental prices of residential properties with retail shop attachments are marginally lower than those without the attachments, which is statistically significant at p < 0.050. In the low-density zone, rental prices of residential properties that are without retail shop attachments are statistically higher than those with the attachments. This study, therefore, concludes that, in examining the effects of retail shop attachments on residential property rental prices, the population density of the study area is an important factor that could influence the result. It is therefore recommended that planning authorities in Akure, Nigeria, should ensure close monitoring of the development of residential neighbourhoods, to prevent unregulated attachment of retail shops that could in turn, have unanticipated effects on the prices of residential neighbourhoods.
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