EXAMINATION OF THE IMPACTS OF INFTRASTRUCTURE DEVELOPMENT ON PROPERTY VALUE IN NIGERIA.

ESV ANDREW MEKWUNYE

Infrastructure development is a key driver of property value appreciation in urban areas including semi-urban or satellite towns too. Enhanced accessibility, increased demand and improves quality of life. Improved infrastructure, such as good roads, good transportation system and public amenities, increases the desirability and attractiveness of an area thereby leads to high property demand and property values. One of the biggest obstacles to property appreciation is poor road networks. For instance, two identical houses – one is located along newly constructed expressway and another one in a remote area with bad road. The house with better accessibility will always be worth more. Contrarily, it might interest you to know that the absence of infrastructure development in an area will impact negatively on property values.

However, well-maintained roads and areas with connectivity to major roads attracts more buyers of properties and renters. Infrastructure development often attracts businesses and creating job opportunities. Better access to public utilities like; electricity, water and healthcare facilities in turn impact on property values. Obviously, the presence of these infrastructure and amenities attracts the movement of the people into that location to enjoy such amenities which on the on the other hand increase demand for accommodation and purchase or development of properties giving rise to high property value. As a result of the presence of these infrastructure development; increased demand directly translates into higher property values likewise increased land values mostly underdeveloped or remote areas. Improved infrastructure attracts more people to the area, increasing demand for housing and leading to price appreciation of property value. The construction of commercial centers and business districts driven by infrastructure projects also boost property values in the surrounding areas. People tends to seek for areas where infrastructure developments are available because it makes life easy even though rent is high in these areas. Modern drainage system, reliable power and water supply including internet connectivity contribute to high quality of life and increase property values.

Consequently, a situation where the government failed to provide these infrastructural developments which individual can hardly provide will go a long way to have negative impact on property values. Also, impact negatively on the economic activities and life of the people or residents. Often times, the road infrastructure is underdeveloped even to maintain the already existing ones is a big challenge. It is true that many Federal roads connecting the West to east, east to North, south to West e.t,c are in a bad condition thereby cripple the economic activities which will increase the costs of building materials. This will in turn affects property values because building maintenance will not be easy for property owners to carry out. For instance, take a critical look at Warri – Abuja road, Lagos/Benin/Onitsha road to mention just a few. Commercial buses spent a whole day for a journey that is four (4) to five (5) hours. If commercial vehicles spent a whole day, it there means that big lorries/trucks will spent two to three days that is if the road did not block. When there is no access road in any area residents begin to leave and the movement will create void period in most residential properties in that area thereby impacting negatively on property values in term of rentals. This is because, potential property buyers will not be interested to invest on property development in that area wherein the properties in that location begin to loose its value.

In conclusion, infrastructural development in Nigeria plays a crucial role in shaping the real estate market by influencing property values, land overall investment potentials. Therefore, the three tiers of government should intensify efforts to ensure infrastructure development is top priority of the budget each year including maintenance of existing ones in order to improve property values and life of the citizens. Provision of infrastructure is good but, the government should have or establish good Routine Maintenance Plan to ensure proper maintenance not reactive maintenance Plan. Immediately, the infrastructure is not properly maintain the properties in that area begin to depreciate in value.