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Predictive Modeling Of Office Rent In Selected Districts Of Abuja, Nigeria

Predictive Modeling Of Office Rent In Selected Districts Of Abuja, Nigeria Abstract This study examined the drivers of office rents in selected districts of Abuja, Nigeria. These districts are Asokoro, Maitama and Utako. Primary and secondary data were utilized for the study. Primary data include office rental levels and office space data in the study areas for the period 2001-2012, and were obtained through structured questionnaires administered to real estate surveying and valuation firms which are active in the commercial property markets in the study areas. Secondary data for the study were obtained from the National Bureau of Statistics (NBS) and the Central Bank of Nigeria (CBN), and consist mainly of macroeconomic variables in Nigeria during the study period. Using single-equation regression analysis, the developed office rent model accounted for 76%, 72% and 75% of the variation in office property rents in the commercial property market of the Asokoro, Maitama and Utako districts respectively. The study also revealed that real GDP growth and vacancy rate are the major determinants of rental growth in the office property market in the districts of Asokoro and Maitama, while real GDP growth is the major driver of office rents in the Utako district. The socioeconomic implication of the findings is that the government can generate substantial revenue from property rate through sustained commercial property rental performance in the study areas. Such revenue can be deployed to provide and maintain public infrastructure, thereby improving the wellbeing of the citizenry. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Real Estate Management and Valuation de Gruyter

Predictive Modeling Of Office Rent In Selected Districts Of Abuja, Nigeria

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Publisher
de Gruyter
Copyright
Copyright © 2015 by the
ISSN
2300-5289
eISSN
2300-5289
DOI
10.1515/remav-2015-0040
Publisher site
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Abstract

Abstract This study examined the drivers of office rents in selected districts of Abuja, Nigeria. These districts are Asokoro, Maitama and Utako. Primary and secondary data were utilized for the study. Primary data include office rental levels and office space data in the study areas for the period 2001-2012, and were obtained through structured questionnaires administered to real estate surveying and valuation firms which are active in the commercial property markets in the study areas. Secondary data for the study were obtained from the National Bureau of Statistics (NBS) and the Central Bank of Nigeria (CBN), and consist mainly of macroeconomic variables in Nigeria during the study period. Using single-equation regression analysis, the developed office rent model accounted for 76%, 72% and 75% of the variation in office property rents in the commercial property market of the Asokoro, Maitama and Utako districts respectively. The study also revealed that real GDP growth and vacancy rate are the major determinants of rental growth in the office property market in the districts of Asokoro and Maitama, while real GDP growth is the major driver of office rents in the Utako district. The socioeconomic implication of the findings is that the government can generate substantial revenue from property rate through sustained commercial property rental performance in the study areas. Such revenue can be deployed to provide and maintain public infrastructure, thereby improving the wellbeing of the citizenry.

Journal

Real Estate Management and Valuation – de Gruyter

Published: Dec 1, 2015

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    Ozyurt
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    Dewit
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    Stevenson
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    Udoekanem
  • Real Estate Market System - phase Space Theory Approach Real Estate Management and Valuation No pp
    Radzewicz
  • The Prediction of Urban Office Rents No pp
    Orr
  • The Three Dimensions of Real Estate Markets : Linking Space Capital and Property Markets of Real Estate Finance fall
    Archer
  • Macro - economic Factors Affecting Office Rental Values in Southeast Asian The Case of Singapore Lumpur and Bangkok Paper presented at the thPacific Rim Real Estate Society Conference held in Brisbane Australia
    Chin
  • The Global Determinants of Direct Office Real Estate Returns of and No pp
    Dewit
  • Interactions Within the Office Market Cycle in Great Britain of Real No pp
    McGough
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    Boon
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    Hekman
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    Rosen
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    Boon
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    Hendershott
  • From Uncertainty to Efficiency of the Real Estate Market The European Real Estate Conference
    Radzewicz
  • arcy An Econometric Analysis and Forecasts of the Office Rental Cycle in the Dublin Area of Property Research No pp
    McGough
  • Resource thEdition New Jersey
    Barlowe
  • Macro - economic Factors Affecting Office Rental Values in Southeast Asian The Case of Singapore Lumpur and Bangkok Paper presented at the thPacific Rim Real Estate Society Conference held in Brisbane Australia
    Chin
  • Real Estate Valuation : The Effect of Market and Property Cycles of No pp
    Born
  • Modelling Rental Changes Across Key Retail Investment Market in Britain of Property Investment and Finance No pp
    Colwell
  • Interactions Within the Office Market Cycle in Great Britain of Real No pp
    McGough
  • Comparison of Alternative Rental Forecasting Models : Empirical Tests on the London Office Market of Property Research No pp
    Stevenson
  • The Working of the London Office Market : Model Estimation and Simulation Real Estate Research Institute
    Hendershott
  • The Dynamics of Real Estate Field of Value Real Estate Management and Valuation No pp
    Kuryj
  • Rental Price Adjustment and Investment in the Office Market of No pp
    Hekman
  • Short and Long - run Rent Adjustment in the Dublin Office Market of Property Research No pp
    McCatney
  • Resource thEdition New Jersey
    Barlowe
  • Spatial Dependence in Commercial Property Prices Micro Evidence from Netherlands European Central Bank Working Paper Series No
    Ozyurt
  • Research in the Social Auckland Ltd
    Frankfort
  • Real Estate Market System - phase Space Theory Approach Real Estate Management and Valuation No pp
    Radzewicz
  • arcy An Econometric Analysis and Forecasts of the Office Rental Cycle in the Dublin Area of Property Research No pp
    McGough