Determinants of rental value of Residential Properties in Port Harcourt Municipality
This study investigates the factors that determine residential rental values in Port Harcourt Municipality, highlighting a gap in existing research concerning the reasons behind rental variations in this urban area. Using a quantitative cross-sectional survey approach, data were collected from 399 respondents across five neighborhoods: Elekahia, Orugbum, Oromeneke, Ogbunabali, and Abuloma, through structured questionnaires. The analysis utilized descriptive statistics and the Relative Importance Index (RII) to identify and rank the key factors influencing rental values. The findings reveal a predominance of smaller, affordable housing units, with 25% of respondents living in one-bedroom flats, 23.2% in tenement houses, and 12.89% in studio apartments. Rental values show significant variation across neighborhoods and property types. Abuloma has the highest rents due to its superior infrastructure and amenities, while areas like Orugbum and Ogbunabali provide more affordable options for lower-income households. Location was found to be the most significant factor affecting rental values at 23.2%, followed by property condition at 20.62% and room size at 12.89%. Accessibility, particularly through well-maintained roads, was identified as the top factor influencing rental variations, emphasizing the crucial role of infrastructure in residential desirability. The study emphasizes the necessity of developing affordable housing and improving infrastructure to address the increasing demand in Port Harcourt’s diverse market. Policymakers and real estate investors can leverage these insights to shape strategies that promote sustainable development and investment growth. The recommendations include closing infrastructure gaps, enhancing the quality of neighborhoods, and offering a variety of housing options. By effectively addressing the socio-economic needs of Port Harcourt’s residents, stakeholders can create a more inclusive and dynamic real estate market.
Keywords: Residential rental values, Port Harcourt, housing affordability, infrastructure, real estate investment, neighborhood quality
