Effects of Physical Obsolescence in Rental Value of Residential Properites in Aba Road, Ikot Ekpene

Student: Blessing Okpo Obiosio (Project, 2025)
Department of Estate Management and Valuation
AKWA-IBOM STATE POLYTECHNIC (IEI), IKOT-OSURUA, AKWA IBOM STATE

Abstract

ABSTRACT This study examines the impact of obsolescence on the rental value of residential real estate in Ikot Ekpene, Akwa Ibom State. Data collected through a field survey of 180 respondents revealed that all participants (100%) have experienced some form of obsolescence in their properties. The study identifies three main types of obsolescence: physical (55.56%), economic (28.88%), and functional (15.56%). Analysis of rental values across different wards indicates that rental prices range between ₦21,000 and ₦45,000 per annum, with Ward 8 having the lowest and Ward 1 the highest average rental value. A multiple linear regression model was employed to establish the relationship between obsolescence and rental value. The findings indicate that physical and functional obsolescence significantly impact rental values (p < 0.05), while economic obsolescence does not. The analysis further reveals that obsolescence explains 93% of the variation in rental values (R² = 0.930), confirming a statistically significant relationship at a 95% confidence level. The study concludes that addressing obsolescence in residential properties is crucial to maintaining and enhancing rental value in the study area.

Keywords
Property value estate income environment percentage
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