Modelling the effects of location attributes on property prices in Ile-Ife, Nigeria: A Geospatial Regression Approach

Daramola Olapade

ERES from European Real Estate Society (ERES)

Abstract: The fixity of location makes the types of surroundings and neighbourhood in which a property situates affect its price. There is a usual saying by real estate agents that the three key factors that determine the price of a house are location, location and location. Considering the importance of location in determining the prices of properties, this paper aims to evaluate the effect of locational characteristics on the prices of undeveloped land in Ile-Ife city, Nigeria. This is with a view to developing a model to predict the prices of properties. Using a survey approach, information on locational characteristics and sales prices of undeveloped plots of land (N = 31) transacted between 2021 and 2022 within five nuclei/ residential neighbourhoods (Parakin, Modomo, Moremi, Eleweran, Fashina) in Ile-Ife were obtained. The data obtained were analysed using mean and multiple regression with the aid of GIS tools including ArcGIS, google street map, QGis, and Google Earth. The regression analysis, using prices of plots of land as the dependent variable showed that in all the neighbourhoods, distance to locational attributes (nodes of interest such as secondary school, supermarket, university, church and motor park) and location accessibility were significant in the determination of the price of properties in the selected neighbourhood. However, the effect of the locational attributes on each of the locations was different. The study concluded that locational attributes had a positive impact on the determination of the price of properties.

Keywords: Geographical Information System (GIS); Land Accessibility; Property pricing; Property Valuation (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2022-01-01
New Economics Papers: this item is included in nep-ure
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