Examination of the Factors Influencing Variation in Rental Value Reviews for Commercial Properties in Awka, Anambra State (Published)
The real estate industry plays an important role in shaping the economic environment of any region. Commercial properties are an important part of this industry, becoming the second most visible real estate asset besides residential properties and a very strong driver of economic activities in Awka, the capital of Anambra State. Awka has experienced growth and development in recent years, attracting investors and residents with notable upward review in rental prices for commercial properties. This rise in rental values has outpaced the general inflation rate, which has raised questions about what the underlying factors driving this trend could be. This study examines the factors influencing variation in rental value reviews for commercial properties in Awka, Anambra State, with objectives: to assess the determining factors that affect rental value reviews of commercial properties within Awka, Anambra State.and to ascertain the relative importance of the influence of factor affecting rental value reviews of commercial properties in the study area. The study adopts the Survey method of research, collecting data from Estate Surveyors and Valuers involved in commercial property management in the study area. a total of 107 professionals were sampled using questionnaires and the data was analyzed using frequencies, percentages and weighted scores using means. The research revealed evidences of upward rental values review with 75.6% of respondents reporting increases for commercial properties. Location emerged as the most influential factor, followed by economic conditions and security considerations. The study also identified important interrelationships among these factors, with location and proximity to amenities showing synergistic effects, while security and location demonstrated multiplicative impacts on rental values. The findings highlight the complex dynamics of the Awka real estate market having cogent implications for urban planning, investment strategies, and policy formulation. The study recommends targeted urban development strategies, economic diversification efforts, enhanced security measures, and the establishment of a comprehensive property database to address rental value variations and promote sustainable urban growth in Awka.
Keywords: Awka, Factors, commercial properties, rental value reviews