University Proximity and Residential Rental Values in Peri-Urban Dar es Salaam, Tanzania: Spatial Pricing Dynamics in Emerging African Housing Markets
DOI:
https://doi.org/10.11113/intrest.v20n1.444Keywords:
Rental values, University proximity, Hedonic pricing, Peri-urban housing, TanzaniaAbstract
While the influence of universities on surrounding housing markets is widely recognized, evidence from African cities remains scarce. This study investigates the effect of university proximity on residential rental values in peri-urban Dar es Salaam, Tanzania, focusing on neighborhoods around Ardhi University and the University of Dar es Salaam. Data were collected through structured questionnaires administered to landlords and tenants. Out of 150 targeted respondents, 107 valid questionnaires were completed, resulting in a response rate of 71.3%. The analysis employed a mixed-methods approach, combining a household survey with GIS data. A suite of spatial econometric techniques, including Geographically Weighted Regression (GWR), quantile regression, and kriging interpolation were applied to assess the spatial impact of proximity, property attributes, and local infrastructure on rental values for the year 2024. The findings indicate that proximity to university campuses leads to a significant rental premium, with rental values decreasing by approximately 25% per kilometer from Ardhi University. This trend reflects high demand from students, staff, and associated services. Additionally, property features such as dwelling type and utility availability significantly influence rental levels. However, affordability concerns and informal tenancy practices highlight ongoing challenges in urban housing governance. However, the cross-sectional design and potential for unobserved confounding factors suggest the findings represent a strong association rather than definitive causality. This study offers a novel empirical application of advanced spatial pricing models in peri-urban Tanzania, contributing to policy discussions on balancing rental market efficiency with affordability in rapidly urbanizing African cities.
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