EFFECT OF INSECURITY ON RENTAL VALUES IN URBAN AREAS
POSSSIBLE EFFECT OF INSECURITY ON RENTAL VALUES IN URBAN AREAS; Taking into consideration migration from unsafe areas to Urban areas.
No nation can develop when there is high level of insecurity in the society. The far-reaching effects of insecurity are evident in most communities in Nigeria. Most of the communities in Nigeria and especially in the Northern part of the country are less developed and as recently seen are unsafe for the inhabitants which can result to rural-urban migration mainly to the Southern part of the country.
Insecurity is gradually becoming a norm in the Nigerian society, especially in rural areas with high focus on the northern areas, several abductions of School students from their hostels to banditry and even attacks on Governor in recent times, A few weeks prior to the school kidnapping, Boko Haram extremists admitted to killing more than 100 rice farmers in Borno State, in retribution for farmers cooperating with the Nigerian military. The attack, staged at a rice field in Garin Kwashebe, occurred on a local government councillor election day, the first to be held in 13 years since the extremists launched an insurgency in the area.
Data from SBM Intelligence shows that between January and November 2020, there were 142 incidents in the Boko Haram insurgency in north-east Nigeria, an average of 13 a month.
At least 1,606 people were killed in 125 fatal incidents, an average of 13 per incident, suggesting that Nigeria is the third-most terrorised countries in the world, according to the Global Terrorism Index released on 27 November 2020.
It is common knowledge that the menace of insecurity will bring about multiple effect, one of which will be migration of people from affected areas to urban center, rural-urban migration poses so many challenges, however we look at its effect on property values (Sales and Rentals) in the new areas of settlements.
The effect of these migrations on property values (Sales and Rentals) is a two-ways thing, depending on how resourceful the migrants are, for skilled and resourceful migrants, there is a likelihood of getting a decent income-earning job with which they can compete with population in their respective settled location for the available rental properties hence increasing demand which if not met with a corresponding supply will lead to an increase in rental values.
Rural-urban migration may be positive but however could pose highly dangerous effects if the influx of the migrants is highly unskilled, these set of people who do not have the capacity to acquire decent apartments will settle in areas or locations with less values.
The resultant effect of this will be creation of slum by the unskilled migrants which will then have direct effect on property values, both rental and sales values.
There will be too much dependency on already existing infrastructures, the neighborhood will be become overstressed and adjoining properties which by then would have been taken over by the migrants would have downward effect on the value of the property.
Written by Olabisi Ojekunle, ANIVS and Oluwafemi Olowoyeye.