Land Value Determinants and Rental Values of Office Spaces in lkeja, Nigeria
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Mediterranean Center of Social and Educational Research Rome, Italy
Abstract
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This study was carried out to examine the contributions of land value determinants to variability in rental values
of offices in lkeja, Nigeria. In doing so, road network which has not received much consideration in studies on property
value determinants, were decomposed into its explanatory variables of quality, length, connectivity, and density, in
addition to other variables like location, demand, accessibility, and supply of commercial properties in the study area.
Multiple regression analysis of the data at 95% confidence level showed that accessibility (P-value=0.0045), demand (Pvalue=
0.0022), supply (P-value=0.0115) ANOVA indicated 0.0423 proving that road network have significant effect on
rental value of office spaces in the study area. Similarly, step-wise regression analysis returned four variables
accessibility (0.0011) , demand (0.0004), location (0.0413) and supply (0.0028) as the variables that actually greatly affect
the rental values. The study has reinforced the importance of accessibility to development and investors wishing to
embark on real estate development should be conversant with the level of accessibility of the arterial roads along which
such development will locate. Decision on the location of such development project should be based on a pragmatic
approach such that selected locations would bring the highest return that is adequate and sufficient to compensate
investors
Keywords
HD Industries. Land use. Labor, TA Engineering (General). Civil engineering (General), TH Building construction