ABSTRACT
This study investigates the impact of flooding on commercial property rental values along the expressway in the Uselu and Ugbowo areas of Benin City, Nigeria. The research objectives were to assess the rental values of commercial properties in the study area; to compare the rental values of commercial properties in the study area; and to examine the impact of flooding on the rental values of commercial properties in the specified study area. The study employed a quantitative survey research design, with primary data collected through structured questionnaires distributed to 120 respondents, achieving an 83% response rate.
The findings revealed notable differences in rental values between the two areas. Descriptive statistics showed that the mean rental value in Ugbowo (₦301,000) was higher than in Uselu (₦243,700). While 24 respondents in Uselu reported experiencing flooding, none of the respondents in Ugbowo had experienced flooding. Correlation analysis indicated a moderate negative correlation (-0.593) between flooding and rental values.
Regression analysis further corroborated the negative impact of flooding on rental values. Properties affected by flooding had rental values approximately ₦24,290 lower than unaffected properties, after controlling for property type. The analysis also revealed that shops/ store fronts commanded the highest rental values, followed by offices. However, diagnostic tests suggested potential issues with autocorrelation and multicollinearity, which should be addressed for more robust inferences.
A paired sample t-test was conducted to compare the mean rental values of properties affected by flooding and those not affected in the Uselu area. The t-statistic (-4.6702) and p-value (0.0001) indicated a statistically significant difference, with properties affected by flooding having lower mean rental values than unaffected properties. This finding further reinforces the negative impact of flooding on commercial property rental values in Uselu.
The study's findings provide valuable insights for policymakers, urban planners, and real estate stakeholders in Benin City, particularly in developing effective mitigation strategies and informed decision-making processes for flood-prone areas. The research underscores the significant economic consequences of flooding on commercial property values, highlighting the need for proactive measures to address this environmental hazard.
