AN APPRAISAL OF ARTERIAL ROAD NETWORK AND COMMERCIAL PROPERTY VALUES IN IKEJA
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AN APPRAISAL OF ARTERIAL ROAD NETWORK AND COMMERCIAL PROPERTY VALUES IN IKEJA
1.1 Background of the study
Transportation encompasses the movement of people, goods and services from one point of origin to destination (Filani, 2019). Transportation is indispensable to modern economic development especially in a developing country like Nigeria. It plays a vital role in shaping the economy of any nation (or region) because modern industries and commercial activities rely on proper, well developed and efficient transport system (Oni, 2017). In support of this, pointed out that transportation is a crucial vector for urban insertion since it gives access to economic activity; facilitate family life, and helps in spinning social networks. Transport is a central dimension of the national and global production systems that are reshaping the world, making it a topic of universal interest and importance. People move from one place to the other, regularly or occasionally. Goods collected, extracted and manufactured, must be distributed from place to place prior to consumption. People who need services, which are generally provided at a limited number of places, must travel in order to access such services. Transport therefore fulfils a very important function in a society and is one of the most pervasive factors in any economy (Oyesiku, 2002).
Transportation and property are important in physical and economic development of towns and cities all over the world. Property and land values tend to increase in areas with expanding transportation networks, and increase less rapidly in areas without such improvements. Rapid and continued rise in housing and land prices are expected in cities with transportation improvements and rapid economic and population growth (Goldberg, 1970). According to Bailey, Mokhtarian, and Littlel (2008), transportation route is part of distinct development pattern or road network and mostly described by regular street patterns as an indispensable factor of human existence, development and civilization. The route network coupled with increased transport investment result in changed levels of accessibility reflected through Cost Benefit Analysis, savings in travel time, and other benefits. These benefits are noticeable in increased catchment areas for services and facilities like shops, schools, offices, banks, and leisure activities.
Road networks are observed in terms of its components of accessibility, connectivity, traffic density, level of service, compactness, and density of particular roads. Level of service is a measure by which the quality of service on transportation devices or infrastructu`re is determined, and it is a holistic approach considering several factors regarded as measures of traffic density and congestion rather than overall speed of the journey (Mannering, Walter, and Scott, 2004). Access to major roads provides relative advantages consequent upon which commercial users locate to enjoy the advantages. Modern businesses, industries, trades and general activities depend on transport and transport infrastructure, with movement of goods and services from place to place becoming vital and inseparable aspects of global and urban economic survival. Developments of various transportation modes have become pivotal to physical and economic developments. Such modes include human porterage, railways, ropeways and cableways, pipelines, inland waterways, sea, air, and roads (Said and Shah, 2008).
According to Oyesiku (2002), urbanization in Nigeria has a long history in its growth and development. Extensive development being a feature of the 19th and 20th centuries, with concentration of economic and administrative decision-making in Lagos, Ibadan, Kaduna, Jos, and Enugu, and high degree of specialization and larger population associated with greater specialization of goods and services. Wyatt (1997) states that urban areas have tendency to develop at nodal points in transport network and places with good road network will possess relative advantage over locations having poor network. Urban locations with such relative advantage are found where different transport routes converge with high degree of compactness, connectivity, density, length and accessibility exhibited within the intra- and inter- urban road networks.
Ikeja is a typical example in the history of growth and development of cities in Nigeria. The city became capital of Lagos State in 1976 with improved road networks developed to cater for increase in concentration of pedestrian and vehicular movements. Similarly, commercial activities like banking, retail/wholesale businesses, and professional services congregated to take advantage of nearness to seat of governance. Concentration of activities attracted consumers and ancillary service providers. This partly caused increase in demand for commercial space and its concomitant effects on commercial property values along arterial roads in the metropolis.
The present position concerning commercial properties in Ikeja is that majority are located along arterial roads that deliver much of the vehicular and pedestrian movements. There have been increases in rental values along the individual arterial roads although not at equal rates. It is against this background that this research analyzed the arterial roads, determined the levels of accessibility, connectivity, traffic density of the individual arterial roads, examined the pattern of commercial property values and the relationship between the explanatory variables of the road network in Ikeja Nigeria.
1.2 Statement of the problem
Many studies have focused on the connection between transportation and the values of urban property. The roads exhibit a number of nodes and linkages to form arterial and minor route networks along which commercial properties are situated. Commercial users displaced residential users, causing sites to be at highest and best uses with concomitant increases in the values of commercial properties. Accessibility within the road network is affected by the compact nature of various routes that sometimes impede volume of traffic. The road network is made up of nodal points and links that determine the degree of connectivity and accessibility in the network.
There are a number of factors which affect property values. These variables are likely intrinsic or extrinsic. Extrinsic factors include increased demand for lettable space, location, adjacent property quality, park and leisure proximity, local and domestic economic conditions. External factors are due to natural characteristics of the property which affect the city where the property is located. Intrinsic factors arise from within the nature of the property itself and relate to the physical attributes, including size of room, state of repair, decoration, and facilities. Other attributes that increase or decrease the amount that users are willing and able to pay in an open market transaction include physical characteristics of the structure, change in taste and demand, effect of adjacent activities, economic activities, inflation, and changes in legislation. The demand for commercial properties itself is affected by changes in population, planning and development schemes, legislation, and availability of good road networks.
Many of the above studies highlighted the impact of influences on property values generally with little attention given to the nature of the road network and its impact on commercial property values. Therefore, possible relationships between road networks, place attribute, demand and supply, and accessibility and commercial property values have elicited the researcher’s interest in that direction. The relationship can not be calculated without due regard being given, on the one hand, to the explanatory variables and, on the other, to the commercial property values. The use of roads contributes to urban areas being studied in relation to land uses, particularly commercial properties. It is in this context that this study was conceptualized.