IMPACT OF SLUM ON VALUE OF RESIDENTIAL PROPERTIES IN NIGERIA
1.1 BACKGROUND TO THE STUDY
Slums are home to the poorest of urban populations in Africa. The houses inhabited by slum dwellers are mostly decrepit, overcrowded, in neighborhoods that are prone to flooding and beset with poor sanitation and shortage of potable water. Slums are easily formed in areas experiencing rapid urbanization without commensurate increase in the provision and maintenance of housing and infrastructure. Slums have been conceptualized as a group of buildings or an area characterized by overcrowding, deterioration, insanitary conditions, or absence of basic and essential facilities like potable water, drainage system, schools, health facilities, recreational grounds, post office, among others. Slums generate spontaneously and are in some cases, a direct result of the prevalence of poverty experienced by the inhabitants of cities (Olotuah, 2006). Slums, which are regarded as an element of urban decay, also result from congestion in overcrowded cities where poor immigrants seek to settle for just any available accommodation irrespective of quality. The overwhelming negatives notwithstanding, there are some positive aspects to slums. In recent years, some environmentalists and organizations such as the United Nations Population Fund suggested that despite the poor living conditions, slums are positive both environmentally and socially. Because slums are characterized by very high density of housing, its environmental impact is smaller than that of dispersed rural communities. Furthermore, the fertility rate of new slum dwellers is below the replacement rate; this mitigates dangers associated with overpopulation that results from manpower-intensive subsistence agriculture, and frees up arable land for the nature, or more efficient industrialized agriculture. Slum dwellers also appear to have vastly better opportunities for getting jobs, starting small businesses and climbing out of poverty than rural inhabitants (Akinyode, 1998). Nigeria is ranked as one of the countries with high slum prevalence. The proliferation of shanty dwellings, squatter settlements and slums in most of our cities in Nigeria including the cross rivers state which is the being focused on in this study. However, it has been asserted that the presence of slum increase the rate of crime in the area thereby affecting the value of the residential property (Omole, 2010). The prevalence of slum in Nigeria has significantly affected the value of residential properties in the affected areas. This value is determined by the prices of the residential property or by the value of rent per a period time that is collected on them. However, the researcher will find out the impact of slum on the value of residential property in Nigeria.
1.2 STATEMENT OF THE PROBLEM
The process of urbanization which means specific changes in the distribution and structure of population as well as in a size and character of a settlement, their network or system, has many sided relationship with slums formation. The rapid rate of urbanization witnessed in the last century has produced more slums in the major cities of the world, particularly in developing countries where thousands of rural people move into the major cities at large proportion. Presence have slum is believed to have been a major cause of organized crime in the society. The researcher will investigate the impact of slum on the value of residential properties in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
1. To examine the impact of slum on value of residential property in Cross Rivers State.
2. To identify the causes of slum formation in cross rivers state.
3. To examine the relationship between slum formation and value of residential properties
1.4 RESEARCH QUESTIONS
1. What is the impact of slum on value of residential property in Cross Rivers State?
2. What are the causes of slum formation in cross rivers state?
3. What is the relationship between slum formation and value of residential properties?
HO: Formation of slum does not have impact of value of residential properties in Cross Rivers State.
HA: Formation of slum does have impact of value of residential properties in Cross Rivers State.
1.6 SIGNIFICANCE OF THE STUDY
The following are the significance of this study:
1. This study will educate stakeholders in housing sector, urban and regional planning and estate management of the causes and characteristics of slum and its effect on the rent and price which are the determinant of the value of those residential properties.
2. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied, it will go to an extent to provide new explanation to the topic.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study on the impact of slum on the value of residential properties in Nigeria will cover the formation of slum in cross rivers state and its effect on house rent, land rent, land purchase, security etc.
LIMITATION OF STUDY
Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.8 DEFINITION OF TERMS
Urbanization: refers to specific changes in the structure and distribution of urban population as well as in size and character of a settlement
Slum: a squalid and overcrowded urban street or district inhabited by very poor people