Assessing the Trend in Rental Values of Commercial Properties along Oyemekun Road, Akure, Nigeria

Iroham, C.O ; Oluwunmi, A.O ; Simon, R.F ; Akerele, B.A (2014)

Article

Commercial property investment which is now very evident along Oyemekun Road, Akure, Nigeria, a place characterized hither to by residential development, leaves investors at dark with the choice of commercial property investment. Commercial properties evident in the study area are purpose-built office space, converted office space and shopping complex. In a bid to lead investors aright on the best decision of the type of property to invest their hard earned income in, a study was conducted to assess the trends in rental values of the properties between 2006 and 2011 in order to discover the property with the highest trend. This study which is a cross-sectional research that entailed the survey of the entire 22 Estate Surveying Firms in the study area made use of questionnaires as the primary source of data. The use of both descriptive and inferential statistical techniques such as the frequency distribution table and the simple linear regression, and Analysis of Variance (ANOVA) were adopted in analysing data. From the study it was discovered that the converted office space is mostly predominant (53%) while the shopping complex is the most professionally managed property (46%) respectively. However, the purpose built office space with the highest R2 of 0.9 and having the highest trend in rental values will result to the fastest recoup of investment. The use of (ANOVA) coupled with Tukey post-hoc test reveal that the rental values of three properties at the 95% confidence level are significantly different (p=0.000). Based on the study findings, it is recommended that the purpose built office space with the highest rent and trend should be the focus of both investors and professional managing agents in order to maximize returns.