Effect of Road Expansion on Residential Property Rental Value: Experience From Nigeria

The urban road expansion project is a major component of urban renewal program carried out in the south-western part of Nigeria. This study examined the impact of the urban road expansion project on residential property rental value in an urban slum in a traditional south-western Nigerian city of Abeokuta. The specific objectives of the study are: to examine land use change in the study area; to assess trend in rental value in the study area; to examine factors influencing residential property value in the study area and to assess the impact of road expansion on residential properties in the study area. In addition to these specific objectives, this study will test a Ho hypothesis, stating there is no significant impact of road expansion on residential property value. The study population for the study are the residents and practicing property managers in the study area. Consideration was given to 1km inward from the expanded roads. Data were gathered using structured questionnaires. Findings from the study revealed that change from one form of residential property to another form of residential property is the most prevalent form of change in land use with a mean of 3.66, followed by change from residential land use to commercial with a mean of 3.44. Also, there is an upward growth in rental value from the period of road expansion project. The study established increase in accessibility as the most prevalent positive effect and gentrification as the most prevalent negative effect of road expansion. Lastly the study established that there is significant effect of road expansion on residential property rental value.