A Comparative Analysis of Rental Values in Slums and Adjoining Neighbourhoods: The Case of Ijora, Nigeria
Slum has been associated with lots of societal ills such as poor housing condition and environmental degradation which has been reported to reflect in the negative effect it has on property values. This study however criticizes the methodological approach of earlier studies where only a single locality (slum) was studied and in other studies neighbourhoods to slum were studied without the study of the slum itself. The approach in this study was by extending the comparison of property values both in slums and within other adjoining neighbourhoods. Data on rental values of self-contain apartment and one bedroom flat located in Ijora Badia and Ijora Oloye, two of the well-known slums in Lagos State Nigeria, and other neighbouring Ijora communities, Ijora Olopa and Ijora 7up was collected. The rental values between the years 2010 and 2019 of these two prevalent residential property types in the communities were gotten from local estate agents practicing in the locality. Data retrieved from a response rate of about 83% was analysed using mean score and the Analysis of Variance (ANOVA) at both the 95% and 99% confidence level. A calculated F ratio of 0.0574 and 0.0262 for the self-contain apartment and one bedroom flat respectively was derived which was far below the minimum of 2.60 or 3.78 required to make the result significant at the 95% and 99% confidence level respectively. Hence, it was discovered that there exist no significant difference in the rental values in the communities thereby negating the adverse effect of the slum on property values. The researchers hereby recommended that investors can embark on erecting decent smaller units of residential property types mostly prevalent in slums as occupants in such communities are more concerned with geographical access to better economic opportunities.