The Effects of Location and Neighbourhood Attributes on Housing Values in Metropolitan Lagos

Abstract

The aim of this paper is to analyse and determine the relative roles of location and neighbourhood characteristics in the determination of housing values/prices. In order to achieve this, attempts were made to evaluate the role of location and neighbourhood factors in the determination of house prices; study how house prices / values vary by area; show how spatial variation of the housing attributes leads to the determination of income sub-groups in cities; and determine the extent to which these findings help in the understanding of the structure of the housing market in Nigerian cities. This paper therefore examined the spatial variations of location and neighbourhood attributes on house prices in the valuation zones. The hypothesis tested is that house prices vary by neighbourhood and locational attributes in metropolitan Lagos. The analysis of variance and multiple regression models were used in the analysis. It is concluded that neighbourhood and locational attributes show more importance on house values when smaller geographical housing units are examined.

Keywords: Locational attributes, neighbourhood characteristics, house values.