Hedonic Values of Physical Infrastructure in House Rentals

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Famuyiwa, F.
Babawale, G.K.
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Emerald Group Publishing Limited.
Purpose – The purpose of this study is to examine the relationship and pricing effects of physical infrastructureonhouserentsusingthehedonictechnique. Design/methodology/approach – Primary data are derived through a questionnaire survey and secondary data from existing literature. Sampling data on 211 detached residential buildings with a range of physical infrastructure attributes within Lekki Phase 1 area of Lagos are analysed with the hedonicregressiontechnique. Findings – Results reveal significant impacts and a range of price premium estimates of physical infrastructureonhouserentsinthestudyarea. Originality/value – The study suggests a nouvelle and contextualized approach for sustainable infrastructure delivery, improvement and maintenance. Appropriate pricing will help to guide and support physical infrastructure development and sustainability. When tailored in line with market support, achievable pricing can be attained in setting land-based user charges and tariffs for cost recovery on projected developments and reform. Results from empirical market evidence also provide demand and viability indicators that offer invaluable blueprints, by which governments, policy/decision makers, investors, town-planning authorities and other stakeholders can take sustainable decisions based on priority, in the face of budgetary constraints – a significant characteristicoftheNigerianeconomy.
Scholarly article
Economic development , Sustainability , Developing country , House rents , Physical infrastructure , Research Subject Categories::SOCIAL SCIENCES
Famuyiwa, F. and Babawale, G.K. (2014) Hedonic Values of Physical Infrastructure in House Rentals. Journal of Facilities Management, Vol. 12 (3), Pp 211 - 230 Emerald Group Publishing Limited. http://dx.doi.org/10.1108/JFM-05-2013-0027