The Impact of Rental Values on Real Estate Commercial Properties in Port Harcourt
AbstractThe study examines the impact of rental values on real estate commercial properties in Port Harcourt in order to increase the confidence of major key players in investment properties. The primary data used for this study was obtained through questionnaire survey with estate surveying and valuation firms used as the study population. The study data analysed the income and rental value on commercial investments properties in Port Harcourt. There are about 1,124 commercial properties in Port Harcourt obtained from GIS. Furthermore, systematic random sampling approach and descriptive statistics was adopted to determine returns on commercial investments, annual rental growth rates and rental index. This research tools are weighted mean, percentage, geometric mean, deviation and coefficient of variation, rental index, analysis of variance (ANOVA), Pearson’s product moment correlation model. The study revealed that quality of construction for the physical characteristics for offices and shops is very bad in the study area; rent review pattern is 3 years; commercial properties have average rental growth rates which means investors are likely to get high returns; annual rental growth rate follows a similar trend and pattern. Furthermore, increase in rental values is due to other factors, other than inflation.Keywords: Rental value, Location Attributes, Real Estate Investment, Commercial Property investment
Copyright (c) 2021 Stanley Chika Nwaogu, Charles O. Esiovwa, Christopher O. Esiovwa
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