ASSESSING RENTAL VARIATIONS IN THE COMMERCIAL PROPERTY MARKET OF ABEOKUTA, OGUN STATE
Toluwalase G. Oluwole, Volume 7 Issue 1, 2025 Pages 44-56, Published: 2025-10-27
Abstract
Urban property markets are dynamic and continuously changing driven by social, economic, infrastructural, and demographic processes. In particular, commercial property markets are sensitive to changes in demand, capital flows, and local market conditions, resulting in changes in rents and patterns of business activity. Hence, the goal of this research is to assess rental variation on Commercial Property Market in Abeokuta, Ogun State, focusing on Kuto and Lafenwa areas. A descriptive survey was used, with a questionnaire serving as the data gathering tool. Every fifth shop in a row was chosen using systematic random selection technique, and the occupants of the selected shop were administered a closed-ended questionnaire. The research findings revealed that despite the inadequate provision of some basic facilities like electricity supply and fire safety measures, rental values steadily increased in both markets, indicating sustained demand for commercial property. It was found that location was the most important factor in determining rental value. While demand and supply factors exerted more influence in Kuto, accessibility, particularly through rail transport was a much stronger factor in Lafenwa. The study concluded that there was rental growth in both markets, but the key drivers varied considerably by location, and it suggested that investors consider upgrading the market facilities and be mindful of the market environment and factors that influence rental value to ensure optimal performance of commercial property investments.