THE EFFECT OF RENTAL VALUES ON COMMERCIAL PROPERTY DEVELOPMENT IN SULEJA AND MINNA, NIGER STATE NIGERIA FROM 2009-2018

Abstract

ABSTRACT The effect of rental values on commercial property development cannot be overemphasized. The upward increase in commercial property development in some areas of Minna and Suleja Metropolis, without a upward increase in rent in Minna and Suleja has necessitated this study. The study sampled 121 Estate Surveyors and Valuers in the study area, by issuing close ended questionnaires and adopted both descriptive and inferential method of analysis. The result of descriptive analysis revealed that commercial shop properties comprised the bulk of commercial property in Minna and Suleja at 81.43% and 91.43% respectively and the result further revealed that rent/m2 of offices is higher that rent/m2 of commercial shop property. The result of simple regression revealed that 65% and 60% variation in number of commercial shop property development in Minna and Suleja respectively is significantly influenced by the trend in rental value of commercial property. The study further found out that 62% and 66% variation in number of commercial office property development in Minna and Suleja is significantly influenced by the trend in rental value of commercial property. The study concludes that rent/m2 in Suleja impact more on commercial property development in Suleja than Minna.