Effect of Environmental Quality on Property Rental Values in Peri-urban Neighbourhoods of Minna, Nigeria

The study examined the effect of environmental quality on rental values of residentialaccommodation at the peripheral neighbourhoods of Minna, Nigeria. Cluster sampling methodwas employed in the selection of sampled areas and, six neighbourhoods were randomly selected.Sample size of 600 was drawn out of the total 18,387 households in the sampled neighbourhoodsusing Adams et al. (2007) simplified formula. Estimation rate of 50% and precision range of ±4were adopted in determining the sample size. Various houses and infrastructure attributes wereused in assessing environmental quality, while current rent passing in the year of study wasadopted. Pearson moment correlation coefficient was employed in assessing the relationshipsbetween environmental quality and rents using environmental indices and mean rents. Resultsrevealed a moderate linear relationship between environmental quality and rents in the2 neighbourhoods (r= 0.48, N= 591, p= 0.000). The coefficient of determination (r = 0.23), impliedthat only about 23% variation in rents in the selected peri-urban neighbourhoods can be attributedto environmental quality factors; other variations in rents are explainable by other factors relatingto physical, legal and locational attributes of individual building. The implication is that,developers invested in location that promised them optimum returns over a period of time withoutmuch consideration to the quality of the environment. The study recommends routine housingmaintenance, infrastructure provision and refurbishment for the achievement of qualitative andsustainable environment.