Title: Assessing the Impact of Informal Settlements on Residential Property Rental Values in Ibadan Metropolis
Authors: AROWOLO, Babatunde Emmanuel, OGUNTOKUN, Babajide Femi
Volume: 9
Issue: 8
Pages: 125-133
Publication Date: 2025/08/28
Abstract:
: This study examined the impact of informal settlements on residential rental values in Ibadan Metropolis, Oyo State, Nigeria; a city experiencing rapid urban growth and extensive informal housing. Using a descriptive and inferential quantitative research design, data were gathered from 360 residents across five urban Local Government Areas (Ibadan North, North East, North West, South East, and South West) and 34 estate surveyors. A validated, reliable questionnaire (Cronbach Alpha = 0.83) captured data on socio-economic conditions, rental trends, and settlement features. Descriptive results showed that poor quality of life, inadequate sanitation, lack of access to social infrastructure, poor drainage, overcrowding, and exposure to environmental hazards significantly lower rental values. Mean scores for these factors ranged from 2.0434 to 4.8536, with Ibadan East (mean = 4.8536) and Ibadan North (mean = 4.3523) most affected, while Ibadan West and South East recorded relatively lower impacts (Ibadan West mean = 2.8536). ANOVA confirmed a statistically significant difference (Mean Difference = -19.000; p < 0.05) between the factors driving informal settlements and their effects on rental values. The study concludes that poor living conditions and infrastructural deficits in informal settlements substantially depress property values. It recommends that local authorities implement targeted infrastructure upgrades, especially sanitation, drainage, clean water, waste management, and healthcare, to improve living conditions and attract investment. Strengthened urban governance and inclusive, community-driven upgrading strategies are vital to sustainably enhance rental values, improve neighborhood quality, and promote orderly urban development in Ibadan.