Urban Infrastructure and Commercial Property Rental Values in South-East Nigeria: A Comparative Analytical Assessment of Their Interrelationship (Published)
Urban infrastructure serves as a crucial foundation for real estate market performance, particularly in rapidly urbanizing regions. This study examines the relationship between urban infrastructural variables and commercial property rental values in South-East Nigeria, focusing on Onitsha (Anambra State) and Aba (Abia State) as representative commercial hubs. Using the Hedonic Pricing Model (HPM), the research identifies and quantifies how key infrastructural factors road networks, drainage systems, water supply, security, parking space, internet connectivity, and digital utilities influence the rental values of shops and offices between 2015 and 2025. Data were collected through structured questionnaires and analyzed using mean responses and econometric estimations. The findings indicate that urban infrastructure significantly and positively influences commercial property rental values in both cities, with stronger effects observed in Onitsha. Specifically, a one-unit improvement in infrastructural quality increases annual rental values by an average of ₦17,000–₦20,000 in Onitsha and ₦14,000–₦16,000 in Aba. Among the infrastructural variables, road networks (₦21,000 in Onitsha; ₦18,500 in Aba), security (₦19,100; ₦16,600), and water supply (₦18,200; ₦16,500) exert the greatest positive impacts on rental growth. Emerging digital infrastructure including internet availability, CCTV cameras, and smart meters also shows a growing contribution to rental appreciation. Comparative analysis reveals that Onitsha’s rental market is 33% higher and more infrastructure-sensitive than Aba’s, reflecting better urban facilities and stronger commercial demand. The study further finds that infrastructural development explains approximately 60% of rental value variation in Onitsha and 56% in Aba. It concludes that sustained investment in both physical and digital infrastructure is essential for fostering stable, high-value commercial real estate markets in South-East Nigeria. Policymakers are therefore urged to prioritize integrated infrastructure planning, especially in transport, utilities, and security, to enhance urban competitiveness and economic sustainability.
Keywords: Real-Estate Market, commercial property, hedonic pricing model., rental values, urban infrastructure