The Impact of Rental Values on Real Estate Commercial Properties in Port Harcourt

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue VIII, August 2021 | ISSN 2454–6186

The Impact of Rental Values on Real Estate Commercial Properties in Port Harcourt

Stanley Chika Nwaogu¹, Charles .O. Esiovwa², Christopher .O. Esiovwa^3
1Department of Estate Management, University of Nigeria, Enugu Campus, Enugu, Nigeria.
²Delta Development and Property Authority, Asaba.
³Department of Estate Management, Bells University of Techonology, Ota, Ogun State, Nigeria

ABSTRACT
The study of performance of real estate investment, whether residential or commercial, is very important at this time when emphasis is on investment performance analysis in many parts of the world. This is important in Nigeria due to the impact of the ongoing changes in the global and local economy on the performance of commercial properties which requires careful consideration in investment decision making process. In order to increasing the confidence of major key players in real estate investment, this study examined the impact of rental values on real estate commercial properties in Port Harcourt. There are about 1,124 commercial properties in Port Harcourt obtained from GIS. Systematic random sampling approach and descriptive statistics was adopted. The research tools used are weighted mean, coefficient of variation, rental index and ANOVA. The study revealed that rent review pattern for investment properties in the study area is 3 years; with average rental growth rate that follows a similar trend and pattern and the implication of these is that, investment on commercial properties are likely to generate higher returns. However; the study recommends that proper maintenance and management by real estate professionals can sustain consistency in the trend and pattern of investment return.

Keywords: Rental value, Location Attributes, Real Estate Investment, Commercial Property investment.

1. INTRODUCTION

The real estate market is a major receptacle of foreign direct investment and the extent of its development determines the extent to which it can contribute and keep afloat a nation’s economy. The Nigerian real estate market with its potential, like similar markets in several emerging economies in Africa, has not benefitted from internationalized property investment and remains poorly researched (Babawale, 2019).
Jones Lang LaSalle (2017) stated that with surging rents, significant housing deficits, and over-regulation, the Nigerian real estate market is a matrix of opportunity and unique challenges, which only optimistic investors would be able to successfully convert into viable,

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