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The Impact of the Lagos Metropolitan Development and Governance Project on Residential Property Values

Author/s: Ezinne Ifeoma Onyekwelu, Joseph Ugochukwu Ogbuefi, Obinna Collins Nnamani

Date Published:

Published in: Volume 28 - 2022/2023 Issue 2 (pages 104 - 137)

Abstract

This paper aimed at empirically investigating the impact of a ‘moderately unsatisfactory’ urban regeneration scheme on the surrounding housing rental values of units of flats in some selected slum areas of Lagos state, Nigeria. The study employed the hedonic pricing model to assess the rental values of 385 units of flats, and the survey method is used to elicit information from 107 stakeholders. The t-test was used to assess the impact of the Lagos Metropolitan Development and Governance Project (LMDGP) on the rental values of units of flats; while stakeholders’ responses were analysed using mean and standard deviation. The t-test results show that the residential housing rental value was significantly higher in the post-urban regeneration period than the pre-urban regeneration period (t = 28.252, p < 0.001). This is also confirmed by the hedonic pricing model test (t = 26.289, p < 0.001). The stakeholders’ survey findings revealed that the LMDGPs have positive impact on the rental values of units of flats within the study areas. These results attest to the huge potential of using urban regeneration schemes to address urban problems by improving the physical, social, economic, and environmental conditions through reduction of spatial social inequalities, and enhancement of inhabitants’ overall quality of life through actions on building and the urban environment, improvement of housing conditions and dysfunctional real estate markets.

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Keywords

Hedonic Model - Lagos State - Moderately Unsatisfactory - Rental Value - Urban Regeneration

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