Factors influencing rental variation of residential and commercial properties in Jos, Nigeria

Abstract

Rent is the immediate return on property investment. Several Ethno-religious conflicts in Jos have caused a shift in
population and businesses polarising the city. These dynamics created a loop on the best type and suitable location for
property investment without an expert’s advice. This study examined the factors influencing rental variation in residential
and commercial properties in Jos for the period of six (6) years (2015 to 2021). The population for the study comprised
rented residential and commercial property tenants as well as practicing Estate Surveying and Valuation firms in Jos,
Nigeria. The purposive sampling technique was adopted in the sampling of four (4) residential neighborhoods
representing one low, two medium and one high density neighborhoods with one (1) commercial properties from the two
(2) Local Government Areas (LGAs) (Jos North and Jos South) that made up Jos metropolis and the systematic sampling
technique was then used in the sampling of respondents for the study. A sample size of 367 tenants of both commercial
and residential properties; and a total of 20 real estate firms were sampled. Rental values for the study period were
collected from practicing Estate Surveyors & Valuers in Jos while structured questionnaires were administered to tenants.
Descriptive and inferential statistical tools such as Mean and Multiple Regression analysis were used in analysing data.
The study revealed the rental values of residential properties in Jos South performed better than that of Jos North while on
the contrary, the rental values of commercial properties in Jos North performed better than that of Jos South. It also
revealed that Number of Bedrooms, Number of Convenience, Electricity, Water Supply, Security, Road Network,
Drainage Network, Physical Condition of Building, Sanitary Condition of the Neighbourhood and Location in relation to
Recreational Facilities are all influencing factors of residential property values while for commercial properties, the
variation can be attributed to Electricity, Parking Space, Security, Drainage Network, Physical Condition of the Building,
Numbers of Floor and Floor Area, although, in varying degrees and these factors are useful and imperative for informed
property investment decision making