Arterial Road Network And Commercial Property Values In Ikeja, Nigeria

 ABSTRACT

This study was undertaken to analysis the arterial road network and commercial

property values in Ikeja, Nigeria. This was with a view to conducting detailed

investigation into the relationship between arterial road network in the presence or

absence of other variables and commercial property values in the city. In attaining the

stated aim and objectives of the study, two hypotheses were formulated and tested.

The hypotheses are that there is no significant relationship between commercial

property values and independent explanatory variables in the study area; and there are

no differences in relative contributions of the explanatory variables to variability in

commercial property values in the study area.

Data were collected from primary and secondary sources. The secondary

sources included journals, textbooks, unpublished past projects and the internet. The

primary sources were data on demand, supply and commercial property values over a

five-year period obtained through questionnaires administered on Estate Surveyors

and Valuers and occupiers of commercial properties.

Total of twenty arterial roads in the study area were used in the analysis of the

road network and one hundred and ten Estate Surveyors and Valuers randomly

selected. The population of occupiers was estimated based on total number of

commercial properties captured by use of Geographical Information System, and

randomly selected in relation to the length of arterial roads along which they are

located. The appropriate sample sizes were determined using the Bartlett, Kotrlik and

Higgins (2001) model.

A multiple linear regression model was used to describe the relationship

between commercial property value and explanatory variables of arterial road

network, accessibility, demand, supply and location at 0.05 confidence level. The

study showed that there was statistically significant relationship between the variables

and commercial property values in the study area. The statistics indicated that the Pvalue

= 0.0423; R2 = 69.37% indicating that the variables explained about 69.4% of

variability in commercial property value in the study area. The individual contribution

of each of the variables was determined using second order polynomial regression

model, which showed marked differences in contributions to variability in

commercial property values.

A stepwise regression analysis was carried out to determine the variables that

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were particularly statistically significant. It revealed that accessibility, demand,

location, and supply contribute significantly to variability in commercial property

values in the study area. Furthermore, the principal components analysis showed that

three components – accessibility, location and demand - have Eigen-values greater

than 1.0 accounting for 76.82% of variability in the original data. The study also

revealed that commercial property values, demand and supply of commercial

properties have been on the increase in the past five-years and that the increase will

continue into the foreseeable future, all things being equal. The R2 statistic indicated

for each variable implied very high probability of attaining the prediction.

Recommendations were made in line with the research findings that the

Nigerian Institution of Estate Surveyors and Valuers (NIESV) should embark on

funding of research into the impacts of different modes of transportation on property

values; individual Estate Surveyors and Valuers should have analytical mind in

emerging competitive professional terrain through the use of scientific techniques;

and that the Lagos State Government should consider the construction, maintenance,

and rehabilitation of road networks in the study area as very paramount in their budgetary allocations.