TABLE OF CONTENTS
ABSTRACT. iii
TABLE OF CONTENTS. v
CHAPTER ONE. 1
INTRODUCTION. 1
1.1 Background to the Study. 1
1.2 Statement of the Problem.. 4
1.3 Objectives of the Study. 6
1.4 Research Questions. 6
1.5 Research Hypothesis. 7
1.6 Significance of the Study. 7
1.7 Scope of the Study. 8
1.8 Limitations of the Study. 8
1.9 Organization of the Study. 8
1.10 Definition of Terms. 9
CHAPTER TWO.. 12
REVIEW OF RELATED LITERATURE. 12
2.1 Introduction. 12
2.2 Theoretical Review.. 12
2.2.1 The Accessibility Theory. 12
2.2.2 The Hedonic Pricing Theory. 13
2.2.3 The Urban Growth Theory. 13
2.2.4 The Neighborhood Effect Theory. 13
2.3 Conceptual Review.. 14
2.3.1 Overview.. 14
2.3.2 Theoretical Framework. 14
2.3.3 Transportation Infrastructure. 15
2.3.4 Utility Infrastructure. 15
2.3.5 Social Amenities. 15
2.3.6. Economic Impacts. 16
2.3.7 Case Study: Lagos. 16
2.3.9 Challenges and Limitations. 17
2.3.10 Government Policies. 17
2.4 Empirical Review.. 17
2.5 Summary of Literature Review.. 19
CHAPTER THREE. 21
RESEARCH METHODOLOGY. 21
3.1 Introduction. 21
3.2 Research Design. 21
3.3 Population and Sampling. 22
3.4 Data Collection Methods. 22
3.5 Data Analysis Techniques. 23
3.6 Ethical Considerations. 23
3.7 Conclusion. 24
CHAPTER FOUR. 26
DATA ANALYSIS AND INTERPRETATION. 26
4.1 Preamble. 26
4.2 Socio-Demographic Characteristics of Respondents. 26
4.3 Analysis of the Respondents’ Views on Research Question one: 30
4.4 Testing Hypothesis. 43
4.5 Discussion of Findings. 46
CHAPTER FIVE. 49
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 49
5.1 Summary of Findings. 49
5.2 Conclusion. 50
5.3 Recommendations. 51
REFERENCES. 53
APPENDICES. 57
Appendix I: Research Questionnaire. 57
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Many scholars have tried in different ways to define or explain the meaning and concept of the term “infrastructure”. Notably, the United States National Research Council has largely captured the entirety of the term as referring to "both specific modes of operation - highways, streets, paths and bridges"; local transport; airports and airways; water supply and water resources; wastewater management; Solid waste treatment and disposal; electricity generation and transmission; Telecommunications and hazardous waste management – and the combined system that makes up these modal elements. According to Okoronkwo and Ezeh (2012) cited in Okorafor et al. (2017), infrastructures are not the things that nature has endowed humans with, but rather the profitable transformation of these natural resources for the advancement of society and the benefit of humans.
Infrastructure development, on the other hand, refers to the creation of basic amenities and services that must be present for a particular activity or pursuit. However, no country can boast of significant development or improved economy without providing basic infrastructure for the well-being of citizens (Innocent et al., 2019). Efforts in infrastructure development and provision contribute significantly to the population growth of a country's urban centers.
Good roads, telecommunications, seaports, electricity, water supply, goods, sewage and sanitation, railways, airports, educational institutions, security and health care are essential for the functioning of economic sectors in a developing world. In many countries and for many years, economists, planners and surveyors have been trying to provide answers to why economic growth is faster in some regions than in others and why some cities are growing faster than others. With the availability of major infrastructure investments in a city, there would typically be a corresponding population growth and increased demand, which will ultimately influence real estate development.
Scholars have debated the role of physical and social infrastructure in development without reaching a definitive consensus on its importance relative to other dynamics in human development. There is no denying that there is a high positive association between developed infrastructure and sustained high rates of economic growth and trade, coupled with significant reductions in poverty, inequality and environmental degradation (Bello, 2002). Furthermore, infrastructure development plays a crucial role in shaping the economic and social landscape of any country and Nigeria is no exception.
The relationship between infrastructure improvements and property values is an important area of research given the rapid urbanization and economic growth the country is experiencing. Infrastructure, including transportation networks, utilities and public facilities, has a profound impact on real estate markets, affecting accessibility, desirability and ultimately property value. As Nigeria continues to invest in infrastructure development to accommodate its growing population and drive economic growth, understanding these dynamics will become increasingly important for policymakers, investors and urban planners alike.
Recent research highlights the significant impact of infrastructure development on property values in Nigeria. For example, a study by Olayiwola and Akinmoladun (2022) shows how the expansion of transport networks such as roads and railways can lead to higher property values in adjacent areas. This effect is particularly notable in cities such as Lagos and Abuja, where infrastructure investments have spurred both residential and commercial property development (Olayiwola & Akinmoladun, 2022). Similarly, the work of Eke and Onokala (2021) shows that the provision of basic utilities such as electricity and water is directly correlated with property value appreciation in various Nigerian states (Eke & Onokala, 2021).
The role of infrastructure in increasing property values is also highlighted by a study by Okafor and Agboola (2020), which examines the impact of new road projects on property prices in Lagos. Their results suggest that properties along newly constructed or upgraded roads experience a significant increase in value compared to properties in less accessible areas (Okafor & Agboola, 2020). Additionally, Adebayo and Ogunleye's (2023) research examines how infrastructure improvements in urban centers contribute to spatial economic development and influence real estate markets in Nigerian cities (Adebayo & Ogunleye, 2023).
The implications of these results are critical to understanding how infrastructure development can be used strategically to stimulate real estate markets and urban growth. For example, the Nigerian government's investments in the development of new transport corridors and urban infrastructure have been proven to increase property values and attract real estate investments (Ibrahim & Nwachukwu, 2021). Additionally, the work of Nwokoro and Oji (2022) highlights the indirect impact of infrastructure on real estate markets and notes how improved public amenities can increase the overall attractiveness and property value of the neighborhood (Nwokoro & Oji, 2022).
1.2 Statement of the Problem
Infrastructure development has been recognized as a key driver of economic growth and urban expansion, yet its specific impact on property values in Nigeria remains underexplored and inadequately understood. As Nigeria experiences rapid urbanization and significant investments in infrastructure, such as roads, railways, and utilities, it is crucial to assess how these developments affect property markets across different regions. The challenge lies in comprehensively evaluating the direct and indirect effects of infrastructure projects on property values, particularly in a diverse and rapidly changing economic environment like Nigeria. Current literature suggests a positive correlation between infrastructure enhancements and property value increases; however, these studies often lack detailed analyses of regional variations and the multifaceted nature of these impacts (Adebayo & Ogunleye, 2023).
Recent research has highlighted discrepancies in the effects of infrastructure development on property values in different Nigerian cities, reflecting a need for more nuanced investigations. For instance, while some studies indicate that transportation improvements lead to significant property value appreciation in metropolitan areas such as Lagos and Abuja (Eke & Onokala, 2021), other regions may experience varying outcomes due to differences in local economic conditions, infrastructure quality, and urban planning policies. This variation underscores the necessity for a more granular analysis to understand how infrastructure investments translate into real estate value changes across diverse urban and rural settings in Nigeria (Olayiwola & Akinmoladun, 2022).Top of Form
Bottom of Form
1.3 Objectives of the Study
The main objective of the study is to examine Exploring the Impact of Infrastructure Development on Property Values in Nigeria. Specific objectives of the study are:
- To assess the Correlation Between Infrastructure Development and Property Values
- To analyze the Impact of Infrastructure Development on Different Property Types
- To examine the Role of Infrastructure Development in Property Market Dynamics
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- To what extent does the development of specific infrastructure projects correlate with changes in property values in different regions of Nigeria?
- How does infrastructure development affect the value of residential, commercial, and industrial properties differently?
- Does infrastructure development contribute to the overall growth and stability of the Nigerian property market, and if so, what factors mediate this relationship?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: Infrastructure development does not significantly affect property values in Nigeria.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Estate Management sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to Uyo Metropolis. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
1.10 Definition of Terms
1. Infrastructure Development
Refers to the construction and improvement of essential physical systems and facilities, such as roads, bridges, water supply, sanitation, electricity, and telecommunications that support economic activities and enhance quality of life.
2. Property Values
The monetary worth of real estate assets, which can be influenced by various factors including location, condition, and the surrounding environment. Property values reflect the market's assessment of the worth of land and buildings.
3. Economic Impact
The effect that infrastructure development has on the broader economy, including its influence on job creation, local business growth, and overall economic activity. This impact often manifests through increased property values and improved economic opportunities.
4. Urbanization
The process by which an area becomes more urban in character, often driven by population growth and infrastructure development. Urbanization typically involves the expansion of city areas and an increase in infrastructure and services.
5. Real Estate Market
The marketplace where properties are bought, sold, and leased. The real estate market is influenced by factors such as demand and supply, economic conditions, and infrastructure development, which can affect property values.
6. Gentrification
A socio-economic process where a neighborhood undergoes transformation due to an influx of higher-income residents, often driven by improvements in infrastructure and amenities. This can lead to increased property values and displacement of lower-income residents.
7. Spatial Development
The distribution and organization of infrastructure and land use within a geographic area. Spatial development involves planning and implementing infrastructure in ways that can influence property values and overall urban growth patterns.
