EFFECT OF ENVIRONMENTAL QUALITY ON RESIDENTIAL PROPERTY RENTAL VALUE IN BIRNIN KEBBI, KEBBI STATE

Purpose: Environmental attributes are important determinants of real estate value and are a critical factor in determining the prices of residential property. This study aims to investigate the effects of environmental quality on the rental value of residential properties in Birnin Kebbi, Nigeria.

Design/methodology/approach: To achieve this aim, determinants of environmental quality were assessed alongside the rental value of residential properties in the study area. A stratified random sampling technique was employed in the administration of the questionnaire on a sample size of 1,067 out of the 304,113 sample frame of the study population. Of the administered questionnaires, 580 were retrieved (54.5%), which was adjudged adequate for the study. Both descriptive (mean, average weighted mean) and inferential statistical (Spearman's correlation) tools were adopted for analysis.

Findings: The result revealed that the correlation coefficient (r) obtained was 0.344, indicating a positive but weak relationship between environmental score and rental value. And the significant level (p) of 0.450 obtained was greater than 0.05 (95% confidence level), indicating insignificant correlation between environmental score and rental value. The study revealed that there is no significant effect of environmental factors on the rental value of residential properties in the study area.

Research limitation: Determinants of environmental quality were based on the concepts of urban environmental quality; however, the adopted variables were limited to safety/security, drainage, waste disposal system, road network, power supply frequency, water supply, pollution and neighbourhood cleanliness.

Practical implication: The study recommended the need for greater research into how environmental quality, in combination with common characteristics of the residential property market, might help explain variation in the rental value of residential property within a particular area.

Originality/value: The study revealed areas with low mean environmental score having a higher or are at par with the mean rental value of areas with high mean environmental score. The study thus advocates for more study on this line.