CHAPTER ONE

INTRODUCTION/BACKGROUND TO THE STUDY

1.0 Introduction

Merly (1992) defines land to include the ground, its subsoil and all

structures and objects attached to it like building and trees standing on it. Fatula

(2007) sees land to have both natural and artificial contents, though it is the

natural content that consists of the ground, its subsoil and things growing on it

that forms its basic element. According to him, land can be divided into two

namely the corporeal hereditament and incorporeal hereditaments. The

corporeal hereditament include those substantial and permanent objects which

affects the senses, which are permanently immovable. Whie incorporeal

hereditaments are those intangible things which can neither be seen nor handled

but can be perceived and exist on land. Incorporeal hereditaments is not the

subject of the right but the right itself.

However, Dankani (1998) views land to include; nature, space factor of

production, property and capital. In this study, land will be viewed from two

perspectives; and as a physical commodity and as an abstract concept. Land will

also be viewd in this study as that volume of space that encompasses the surface

of the earth which can be used for various purposes including residential. The

emergence of large towns starts from small rural focal points extending to the

immediate surroundings. This urban focal points consumer’s surpluses from the

1
surrounding rural areas. Gradually, it becomes necessary to produce a

marketable surplus of agricultural commodities, as soon as land becomes

important for the production of marketable surplus, its value becomes

maximized (Dankani, 1998) increasing the amount paid for the use of a specific

land. Economic rent which is the price per unit area a land user is able or

willing to pay the owner of the land either as a lump sum to take over ownership

or as an annual lease. This economic rent is equal to the difference in the market

price of the product from that unit area the cost of producing and transporting it

to the market. Land cost vary greatly with time and location conditions, demand

and supply. Von Thunen paid more attention to the influence of land rent on

transportation cost (Distance to CBD). In calculating the economic rent for a

land it is far more better when realistic lump sum (the land price) has to be

calculated, if one owner is selling the land to another, then the expectation about

future benefits from capital invested in the land is compared with investments

elsewhere. Different uses of land play an important role, this means that the

Thunennian model is of little help in calculating “lump sum” or land value

which is basically a speculative value despite the fact that the annual economic

rent is considered by both the buyer and seller when they arrive at their price

(Draking, 1977). Drakin (1997) says that the price value of a land reflects the

capitalized value of the anticipated future cost of the rent.

The price of land allocates space among alternative uses. Failure in the

allocative function of land values are directly related to many of the problems

2
facing urban areas. Government decision like zoning, land use planning, urban

renewal scheme, various land reform measures and so on, which is aimed at

solving these problems; however, require specific assumption concerning land

values also may be responsible for creating or exacerbating some problems of

land value (Asabere, 1981). Asabere (1981) also stated that the value of land at

a particular point in time and space reflects pressure influence in the market

place, the overall condition of the economy, the preferences of the various

actors involved, their abilities and levels of knowledge and gradually all the

factors institutional, cultural and economic impinge upon real estate. The author

also went ahead and said that the different factors affect the pattern of change in

land values can be obtained by considering the nature of supply and demand for

land, which will be carefully examined in this study.

It is of significant importance to state here that under the 1978 land use

decree, it was stated that all land are vested in the Department of Land

Administration under the whole supervision of the Governor of the state and in

the Federal Capital Territory, under the supervision of the Minister of the

Federal Capital Territory (FCT), on whose behalf and with whose expressed

consent all grants of Rights of Land Ownership would be made.

An urban area consists of great variety of interdependent activities and the

choice of various land use depend on rational decision after assessment. Land

use planning plays a decisive role in determining the uses for which various

track of land are put into (Arowolo, 2006).

3
 The extent and quality of liability of land as well as the manner in which

they are used constitute an important basis for wealth, property and well being

of a community. Planning human settlement has been going on from the history

of man existence but scientific planning is however a relatively young discipline

and it has spread quickly throughout the world.

It is historical about management of problems emanating from growth and

changes at its inception. Land use planning activities were directed towards

ensuring orderly development of towns and cities, improvement of health,

safety and visual quality of the physical environment. Land use planning has

generally been accepted as a basis of development as well as redevelopment of

residential areas in towns and cities.

Land is an important component in land use planning and planning for any

land use, be it residential, commercial, industrial, recreational or public land use

based on the availability of land and the total population in consideration. Land

use planning must be base on accurate knowledge of existing land use and maps

should be prepared showing the predominant uses of all land in the planning

area. People live on land and their entire activities takes place on it.

Land use planning cannot take place without the people because, planning

is meant for people and the people live and undertake their activities on land.

Hence all the various physical as well as social infrastructures meant for the

people are to be planned on land. It is common with all types of properties,

residential properties depend chiefly on their ease of access to those location

4
 which support related uses, areas providing good accessibility to school,

hospital, churches, mosque, market, places of entertainment, recreational parks,

areas providing complementing facilities and infrastructures and areas with long

and effective transportation routes.

In the course of studying land use planning; location and accessibility

cannot be isolated, accessibility in this case considers the time and convenience

of getting to a place. Its involve transportation, communication, cost and time

distance consideration. Accessibility does not affect solely the real cost incurred

by movement, but also the real benefit. The accessibility advantage that a

particular city possesses stands as the key factor in the determination of urban

land use pattern.

1.1 Statement of the Research Problem

There are few cities in the world that do not grow, majority of them tend

not only to use up the surplus from agriculture, but also use up agricultural land

as part of urban expansion development. Abuja Municipal which is the head

quarter of Abuja Municipal Area Council, an area council in the Federal Capital

Territory, is witnessing a rapid growth of population and also immigration of

people who flee the capital city due to demolition exercise of houses which do

not form part of the master paln, some equallyimmigrated for business purposes

and some for official duties. This has resulted in the rapid expansion of Abuja

Municipal Metropolis. As a consequence, urban growth alters not only land

5
 value gradients from one city to another but to a variation of land value in the

study area known.

Land use planning influences the value of residential properties generally

and Karu Site and Karu village in particular. It is very glaring that residential

buildings without land use planning makes accessibility difficult and also

creates a rowdy environment.

Generally land use planning is used to create serene, conducive and

habitable environment to dwell in. That is the reason this research is embark

upon in order to provide suggestion or solutions to the problems. Despite this

important of land use planning, the masses still don’t understand:

1. Do residential land values change over time? If so, why?

2. Why should residential properties be in accordance to land use planning?

3. What determines increase in the value of residential properties?

4. Why do accessibility and location have effect on the value of residential

properties?

These are the issues that would be passed in this study.

1.2 Aim and Objectives

This study examines land values and give an appraisal of residential land

values in Abuja Municipal Area Council (AMAC) of the FCT.

The specific objectives of this study are;

i. Identify what determines residential values in AMAC.

ii. Examine the land use characteristics of AMAC, Abuja.

iv. Find out if the residential land values are changed over time.

v. Identify the factors that determine residential values in AMAC.

vi. Determine what correlates between land size and their prices.

vii. Identify the problems faced in land transaction and residential land

allocation.

viii. Recommend strategies of overcoming such problems based on the

findings of this study.

ix. Examine the accessibility and the condition of roads in AMAC, Abuja.

x. Examine the variation in rental values of similar properties in AMAC,

Abuja.

xi. Identify the factors influencing residential value in AMAC, Abuja.

xii. Examine the effect of planning on the residential value of AMAC, Abuja.

1.3 Hypothesis

The proposed hypothesis to be tested in this study is as stated below.

H0: The price of lands are not related to their sizes.

H1: There is no correlation between assessed land market values.

Where; H0 and H1 are the null and alternate hypothesis, respectively.

1.4 Scope of the Study

This study intends to cover only Abuja Municipal Area Council (AMAC).

The study aims at comparing land values at various sections of the metropolis

7
 from the main centre to its fringe. The study will focus on residential land

values as land values for other uses might cause ambiguity and thereby cause

the study to lose focus.

1.5 Justification of the Study

The study will provide an effective means of monitoring the changes of

land values in the study area. This will help control the rapid increase of

residential land values due to high demand.

1.6 Area of the Study

Abuja, Nigeria’s Capital City, was established as part of the new Federal

Capital Territory (FCT) and created by Decree number 6 of 1976, to overcome

the numerous challenges that had made Lagos very expensive and a nightmare

in terms of population, administration, traffic, expansion, infrastructure

development and other urbanization issues. Abuja finally became the nation’s

capital and seat of government on December 12, 1991. It is a purpose-built,

planned city. The territory was carved out of former Nasarawa, Niger and Kogi

States. Abuja is located in the middle of the country, falling within latitude 7°

25’’ north and 9° 2’’ north of the equator and longitude 5° 45’’and 7° 39’’. It

has a land area of 8,000 square kilometres, which is two and half times the size

of Lagos. It is bounded on the north by Kaduna State, on the west by Niger

State, on the East and South-East by Nasarawa State, and on the South-West by

Kogi State respectively. Thus, this geographically places Abuja in the centre of

8
Nigeria. Out of the 8,000 square kilometres land area of the Federal Capital

Territory, the capital city covers an area of about 250 square kilometres.

Administratively, the Federal Capital Territory is structured into six Area

Councils, which are equivalents of Local Government Areas (LGAs) in the

States. It is essentially a civil service city with lots of social amenities, private

and public hospitals, including 2 tertiary health institutions. The natives of FCT

are predominantly farmers.

The FCT experiences three weather conditions annually, with a warm,

humid rainy season, which begins from April and ends in October, and a

blistering dry season, when temperatures can soar as high as 40oC. In between

these two conditions, there is a brief interlude of harmattan, occasioned by the

northeast trade wind, with the main feature of dust haze, intensified coldness

and dryness. The high altitudes and the undulating terrain of the territory act as

a moderating influence on its weather. With a projected population of 1,446,671

as at 2013 (projected from 2006 Census figure of 776,298 at an annual growth

rate of 9.3%), the choice of the site of Abuja, and indeed the entire FCT, is

deliberate and strategic, taking particular cognizance of its central location, easy

accessibility, pleasant climate, relatively low population density and availability

of land for future expansion.

The Abuja Municipal Area Council (AMAC) is one of the Area Councils

and indeed the Capital City. Bounded on the East by Nasarawa State, on the

West by the Kuje Area Council, on the North by the Gwagwalada and Bwari

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Area Councils, the AMAC occupies a land mass of 1,200Km 2. It comprises of

the City Centre, the Wuse, Gwarinpa, Garki, Kabusa, Jiwa, Gwagwa and Gui

Districts. The Karshi Development Area of the AMAC on its part is made up of

Karu, Nyanya, Orozo and Karshi Districts. Along the airport road are clusters of

satellite settlements, including Lugbe, Chika, Kuchigworo and Pyakassa. Other

satellite settlements are Idu (the main industrial zone), Mpape, Karimu and Dei-

Dei (which houses the International Livestock market and the International

building materials market). Each of the Districts is further structured into the

wards and settlements (New World Encyclopaedia, 2018).

These structures are also used by other organizations to administer its own

activities, including Municipal Solid Waste Management. The AMAC is

majorly a Civil Service city, with trading, social services and agriculture to

support residents. Administratively, the AMAC Executive Council is headed by

a Chairman, supported by a Vice Chairman, a Council Secretary, Council

Treasurer and five Supervisory Councillors, one each for Health, Education and

Social Development, Agriculture and Natural Resources, Works and then

Special Duties. It has a 12-member Legislative Council, one each representing

each of the Districts. The Legislative Council is headed by the Honourable

Speaker and supported by other principal officers and Chairmen of eight

Committees. The Council is also structured into nine Departments, each of

which is headed by a Departmental Head. From the traditional perspective,

there are six recognized villages, including:

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 1. Karshi

2. Karu

3. Jiwa

4. Garki

5. Gwagwa; and

6. Nyanya

Each of these villages is headed by an appointed Traditional Ruler for

cultural and grass root administrative convenience. It is also pertinent to state

that the AMAC has fourteen markets, some of which operate on daily basis and

others only on specific weekdays (New World Encyclopaedia, 2018).

11
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This section reviews literature on land use, residential land use, land

values, determinants affecting land values, urban land use and rural land use

dichotomy and land market and its imperatives.

2.2 Concept of Land Use: Residential Land Use and Land Values

From the legal perspective, land includes the ground, its subsoil and all

structures and objects attached to the land like buildings and trees standing on it

(Paton, 1972). Meryl (1992) also defines land as an immovable property

including everything attached to the earth or permanently fastened to anything

that is attached to the earth excluding minerals, as all land can be used

differently.

Land use refers to the manner in which man employs land and its resources

(Balchin, 1979). Land is used virtually in every function including

transportation, production, government, consumption and residential activities

(Asabere, 1981). According to contemporary planning literatures, land use

refers to the use to which a plot or site is put into such as residential, industrial,

commercial, transportation, education, health, recreation and agriculture (Bello,

2004). Bello (2004) in his research in Akure concluded that land use can be

categorised into six in an urban area namely; residential, recreational, public,

12
semi-public including religious land use, commercial, industrial and

transportation. This category forms the basis of land use in urban areas.

Land use in urban areas have been traditionally described by various

models of classical theories. The agricultural land use Model by Henrich Von

Thunen (1826) gave an insight of how land use can be affected by distance from

the market centre. He sees land use to be more intensive in the centre close to

the market and hence diminishes as one moves away from the market centre.

This model provides a pattern of land use and rent yielding capacity falling into

concentric zones around a central market (Kent and Bradford, 1979).

Burgess (1925), Hoyte (1939) and Harriss and Ulman (1945) described the

use in which urban land are put. While the theories provided descriptive guide

to urban land use, they do not sufficiently provide the explanation for why land

use are the way they are (Agbola et al, 2002). The concentrc ring theory of

Burgess (1925) gave that urban land use tend t display a zonal organisation

concentrically arranged about the city has for many years been the starting point

of most considerations of the utilization of land in cities. He derived five zones

and inferred that the city expands by the continuous tendency of each inner zone

to extend its area by the invasion of the outer zone in a process of succession

and invasion. Many recent economic equilibrium models appear to attempt

provide explanations to this theory.

Hommer Hoyte (1939) provided that a constructive criticism of the

concentric ring theory by opining that the internal structure of the city is

13
conditioned by the disposition routes radiating outwards from the inner city

centre. He then inferred the sector theory which stated that land use occurs in

various sectors which lead to the development of urban centre. He argued that

the differences in accessibility caused by marked sectorial variations in the land

values surface and correspondingly. An arrangement of land use in sectors. The

sector theory sees a city to grow in sectors. Richer people occupying the

advantageous sectors at the outer most sector of the urban setting (Agbola et al,

2002), then coming in, the middle class and further inner the low cost housing

and the centre or innermost area containing the Central Business District (CBD)

including all activities of manufacturing, and commercial services. This model

gives the city to be seen in five (5) zones. Robson (1975) found evidence of the

urban areas to develop or land use into five (5) sectors. Also, Jones (1966)

strongly agrees with the sectorial theory as he did his findings in Belfast.

Perhaps the best work which illustrates the Hoytes model was that of P.J. Smith

who first rejected the work of Hoyte, but later agreed with the model when his

analysis of land maps showed the city to occur in five (5) sectors as that of

Hoyte (Kent and Bradford, 1978).

The third model of urban land use is contained in the works of Harris and

Ulman (1945) called the multiple nuclei theory. This theory postulates that

cities are not built around a single centre as postulated by the concentric and

sector theories, rather it states that cities develops from individual separate

nuclei withn an urban area. According to them, many cities do not develop as a

14
single large town from only one centre but develop from different centres called

nuclei into one big city. They also considered accessibility as one of the major

factors that lead to development of the separate nuclei (Agbola et al, 2002).

Alaso the grouping of complementary activities and the fact that some activities

do not occupy the same land, that is, those that repel one another, and lastly, the

fact that some land use cannot afford most desirable sites hence more away to

other areasa (Carter, 1975). Carter also observed that these models are not

mutually exclusive and elements of the four patterns of land use might be

expected where formerly distinct cities have focused to form a megalopolis or

conurbation. He also argued that transportation cost does not only decrease

horizontally as the concentric theory suggests, but also vertically.

Chapman (1979) noted that the spatial patterns of behaviour are a product

of many human decisions, yet these patterns are themselves influenced by

existing patterns he said that narrow roads in urban areas centre affects decision

of land ownership.

Ogunjumo and Olatubara (1998) gave that the location of various

socioeconomic characteristics within metropolitan areas has a lot of influence

on the management of cities, a feature of urban land use which appear to be

unique to developing countries is the emergence of squatter/informal

settlements at the peripheral parts of the city. This is not considered by the

models.

15
 In Nigeria, Mabogunje (1968) postulated a theory called the twin-sector

model this model is applicable in Nigeria and provides for two sectors

traditional centre (core) where the Oba’s palace, the market or village square

and indigenes residence are found, and a second sector the migrant center (non-

indigenes) where immigrants reside. Other models postulated by Alonsi in

(1964), Kain (1968) and Muth (1969) provides the economic equilibrium theory

which backs up most of the early theories and gives patterns displayed by land

uses in urban centres as dependent on land value (bid rent) and transport cost.

The sole function of city land being furnish area, on which to erect its

structures, any utility could compete for any location within a city and all land

gives to the highest bidde who obtains maximum convenience or economy in

time and effort by being accessible (Agbola, et al, 2002).

Residential land use, among the various competing urban land use, is the

largest consumer of land in urban areas (Abuja master plan, 1977 and

Olatubara, 2002).According to the Advanced learners English Dictionary

(2000), the word residential refers an area of a town suitable for living in,

consisting of houses rather than factors or offices. Balchin (1979) sees land use

as the manner in which man employs land and its resources.

Therefore, residential land use refers to the specific use of a particular land

by man for the purpose of constructing houses for living in rather than for

offices or commercial purposes. This definition is drawn from both the

definition of “residential” and “land use” above. Theories and Models of Hoyte

16
(1939) and Burgess (1925) have shown residential land use to extend from the

city centre out ward to the periphery (Agbola, et al, 2002) this is as a result of

certain conditions necessary. Many factors influence urban residential land use.

During development of lands may influences are usually at work (Litchfield,

1924). He also went ahead to state four (4) basic factors that influence

residential land use they include; socioeconomic, physical, environmental and

institutional factors.

Birgham (1971) argues that socio-economic factors that affects urban

residential land use can be grouped into two (2) economic factors including

accessibility, nearness to other communication routes, its situation to other uses,

and nearness to other land use of the same purpose, he also gave the second

social factors as travelling cost to work, shops, schools and recreational

facilities, also non-monetary considerations such as space, peace and quietness

(Lean and Goodall, 1966).

In the same vein, Bello (2002) stated that various factors determine

residential locations include; social factors like shopping, leisure, education or

medical services. Each dwelling also is characterised by economic factors susch

as land price, size accessibility and quality.

The physical and environmental factors that influence urban land use (for

residence) can be viewed from the laws of nature and man-made environment.

The natural physical elements include geographic influence of climate, soil,

topography, drainage and quality of water. While man made environmental like

17
quality of accessibility, location, conformity of land use, durability and the

environment affects land use (Birgham 1971).

Litchfield (1974) gives that critical to urban land use decision is

infrastructure facilities in different parts of the city. He suggests that areas with

basic infrastructures such as access to roads, good drainage, electricity, public

water supply and telephone will attract high residential land use. Fabos, Greene

and Joyner (1978) also agrees that infrastructural affects land use. They see

water which is ubiquitous and unlimited supply, has proved to be very limited

comodty indeed in many parts of the world, especially in urban regions.

Institutional factors have strong influence on residential land use in urban

areas. This includes customs, traditions, laws, organisation and other institutions

of human society which affects the use of land (Oduwaye, 2002) for practicing

planners, land use has been synonymous with zoning, subdivision control, and

other regulations, all of which have been designed to limit right of the

individual in developing private lands. The introduction of zoning during the

early 20th century provided a new, non physical or legal device to deal with land

use issues such as residential land use (Toll, 1969). Land use act as an

institutional factor has made it a basic law in respect of requirement for the

ownership of private land in Nigeria (Sholanke, 1992). Government instruments

such as master plans, regulation, rent laws, land acquisition policies also

influence or affect the use of land in urban areas in Nigeria (Oduwaye, 2002).

This tend to limit the amount of land use for residential purposes.

18
 The provision of appropriate residence or housing for urban population has

always been a major problem faced by most developing countries (Abrams,

1964, and Wikan 1990). The problem arise as a result of rapid urbanisation,

setting of high standard for buildings and lack of access to land (Okoye, 1990).

The lack of access to land is seen as the most important factor for lack of

housing in urban areas (Abuja Master Pln, 1977).

For instance in Nigeria, the Federal Ministry of Works and Housing

(FMWH) (1986), states that land has hitherto, been a major stuming block to

prospective home owners. It is seen as the most controversial and problematic

competent of the housing delivery system. In explaining the importance of

housing delivery, Asiana (1990) observed that there is littlie doubt of all

ingredients of housing, the land factor is of paramount importance, since it is on

land that building will stand. As Nigerian cities evolved due to increasing

degree of urbanisation, they go through traumatic charges in land uses caused

by several competing human activities for scarce urban land (Agbola, 2002).

In most Nigerian cities, there is serious competition for urban land, so that

land assigned for residential and other uses is primarily based on social factors

rather than economic considerations (Onokerhoraye, 1974). This shows that

there is correlation between the structure of social system of the inhabitants and

the physical structure of settlement (Coates, wtal, 1980) practically, in

unplanned Nigerian cities there is correlation between peoples income and the

place where they live or between the urban structure and social structure

19
 (Willey, 1979). The low income people content themselves with living in slums

and squatter settlements in what are often very squalid conditions at the centre

of the city. While, the rich have well laid-out estate with all the amenities

conducive to enjoyment of their housing at the periphery a way from slums and

disturbances. This shows how residential land use differ from one section of the

urban area to another (Asima, 1985, 1990). Apart from internal problems of

land use in urban areas, cities have exploded in their spatial extent and are fast

encroaching on nearby prime agricultural land (Agbola, 2002) causing a

relationship between urban land use and the word land use.

2.3 URBAN LAND USE AND RURAL LAND USE DICHOTOMY

Demographic and economic criteria on which definitions of urban and

rural areas are based can vary widely between different nations making

generalizations problematic (Tacoli, 1998). In the Philippines, urban areas are

defined by national census as all settlements with a population density of at

least 500 persons per square kilometre with infrastructures including a right

angled street pattern, six commercial centre, manufacturing a town hall, chapel,

public plaza, parks or cemetery (Taccolli 1998). In Benin Republic the National

Institute of Statistics and Economic Analysis considers a town as any head town

of a district with a population of 10,000 persons and at least four (4) of the

following: post office, tax office, public treasury, bank running water, electricity

and a proportion of non-agricultural activities (Tinghe – Azalou, 1997).

20
 In India and China, their definition of urban areas is based on high

population, this makes for a vast majority of their population to live in rural

areas despite their very large population in the continent of Asia. If such

population charge with the threshold of low population as the basis for

definition, then this will change Asia’s level of urban areas (Hardoy and

Satterwaite, 1989). However, Asia remains a predominantly rural continent two-

thirds of its population lives in rural areas in 1990 (UNCHS, 1996). In census,

rural areas are defined to be below certain population size. This is seen in the

various population limit of urban areas such as in the Philippines any population

below 500 persons is a rural area when such facilities are lacked as banks, tax

office, post office running water, electricity etc. (Tacoli, 1998).

Land use refers to the various uses in which man employs a specific land

(Balchin, 1925). Urban land use may include activities like residential,

commercial, industrial, transportation, institutional, recreational and parks or

open spaces (Abuja master plan, 1977). Asabere (1981) also gave urban land

use to include, transportation, production (industrial), Government and

consumption activities. However, rural land use is basically agrarian in nature

including agriculture, markets and settlements (Tacoli, 1998). It is a truism that

agriculture is the chief occupation (land use) for more than 80 percent of

Nigerian rural areas (Makinwa, 1981) and the remaining 20 percent is occupied

by residential and markets.

21
 Theories of classical times have tried to explain both land use in rural and

urban settings. Von Thunen (1926) in his agricultural land use model gave the

insight of rural land use, many villages both in the Mediterranean and less

developed countries illustrates the Von Thunen principles (Kent and Bradford,

1978 and 1979) Rural land use of Von Thunen sees agriculture as the

predominant activity and residential to be very less. He further stated that

agricultural activities are intensive close to the settlements and reduces intensity

with distance from the settlement, this is a function of transport cost (Von

Thunen 1826). This similar pattern was observed by prothero in studying land

use at soba in Northern Nigeria, he showed how land use in hausa land are

arranged in largely concentric zones. Prothero subdivided the ruralland use into

four (4) concentric zones stating the zones; zone (A) are areas within the walls

were perisable crops are grown intensively; zone (B) outside the village walls

food crops domintes and is cultivated intensively; zone (C) is the area of land

rotation and crops grown are mostly not food crops, the last zone (D) which is

the outer most zone lies within 4 to 5 kilometres from the village wall dense

bush growth is dominant and less cultivated, he also stated the intensity of

agricultural activities close to the settlement and how the activity decreases

from the village walls out wards. This similarly was proved in an another study

in France, in Carces village showed that farm activities are intensive next to the

village and farmers travel on foot to their farms. It is noticeable that farm land

22
and the intensity of cultivation decreases with distance from the village and its

farmers (Kent and Bradford, 1979).

On the other hand, models of Burgess (1926) and Hoyte (1939) explaining

the structure of urban land use. Where Burgess (1926) gave urban land use to

occur structurally in five (5) zones listing them as; the Central Business District

(CBD), the transitional zone (industrial), zone of working men’s home, zone of

better residence and commuters zone. However, Hoyte (1939) stated that cities

are not arranged in a structural manner but sectorally. He also gave that urban

areas occur in five (5) sectors including: the Central Business District (CBD),

wholesale, manufacturing (light), medium class residential areas and the high

class residential areas (Kent and Bradford, 1979). Both theories of urban land

use showed the pattern in which urban land is been arranged but despite their

difference one thing is common which is that urban (cities) has one centre,

which allows for commuting separate from villages out side it and allows for

other activities such as: industries, commercial and residential (Bradford, 1978).

Rural and urban land use is probably inescapable for descriptive purpose,

however it often implies a dichotomy which encompasses both spatial and

sectoral dimension (Tacoli, 1998). The sectoral distinction between rural and

urban land use (settlements) often assumes the livelihood of their inhabitants in

two main categories; agricultural based rural areas and a reliance in

manufacture and services in urban areas (Tacoli, 1998). This shows that rural

land is agrarian and urban land use is manufacturing and service oriented. This

23
also depicts the difference between Von Thunen agricultural land use and urban

structure land of Burgess and Hoyte (Agbola, 2001). Availability of

infrastructural facilities also tend to mark the difference in land use, where

facilities such as electricity, water, accessibility, telephone, good drainage are

typical land use types of urban areas such is lacked in rural areas (Litchfield,

1974).

Spatial dimension such as access to land and water is important

distninction between urban and rural land use. Bah, et al (2003) stated land

tenure system is a major difference, they made clear that rural areas with a

mixture of customary statuary right in land ownership tendsd to make land more

available in these rural areas for development or use than in urban areas where

formalised land tilting and registration makes for scarcity of land.

Land use density is a significant concern, higher densities urban land use

require mansory materials at high cost and less flexibility but infrastructures of

the same kind are less expensive in disperse surbub (rural areas). Toll (1969)

also sees zoning as a factor that has helped in solving problem organisation of

activities in urban areas through organised land use system, such is lacked in

rural areas allowing for unorganised land use system leading to slums (Fabos,

1985).

Industries are located in urban areas due to the availability of

infrastructures like telephone, natural resources, electricity, railways, finance,

drainage, industrial estates and factory buildings (Makinwa, 1981). When all the

24
small scale, medium scale and large scale industries are considered, the overall

pattern of industries reveal high concentration in urban areas (Aluko, 1967).

According to the Nigerian Industrial Directory (1974) industries are located

majorly in cities this was show in a study by Makinwa in 1981 that industries in

Benin and also persons working in these industries are located in the city

(Makinwa, 1974). Ontheotherhand, rural areas are also endowed with industries

as a land use feature. These industries are small scaled and includes: the

primitive house hold industries which stone, bone and fibres are raw materials.

Also, the simple powered household industries which windmills, animal draft

are used and lastly the community workshop industry which includes

technological processes and labour skill such as cottage, blacksmith and food

processing industries.

Much of the later development debate of the last 40 years has centred on

the changing relationship between rural areas and industries urban areas and the

allocation of investments between the two (2) sectors (Bah et, al 1998). Recent

researches has shown that the number of urban households engaging in

agricultural activities is far higher than usually thought (Abramovay and sachs,

1996). Urban dwellers make livelihood from commercial farming and by direct

employment on the farms (Kamete, 1998), the rural areas ontheotherhand

engage in commercial, manufacturing and service providing (Bah et, al 1998).

Even as activities can be described as rural or urban, there is continued and

varied exchange or resources between them. Urban centres may provide

25
markets as well as social and producer service for the rural population (Tacoli

1998). Whereas rural country side provides human, financial and raw material

resources from farms (Kamete, 1998).

Further more the timing and size of land sales may as well influence the

type of development on it (Kent 1979) this may apply to both rural and urban

centers. The demand and supply of land to meet rural and urban needs is

determined by nature, availability, topography, soil fertility, prior investment

including structures all help to create the different land use in urban areas

including residential (Salazar 1995).

2.4 CONCEPT OF LAND VALUE

Land value in both social and economic context is a surrogate for

measuring the spatial efficiency in the use of lands in the urban system (Agbola

et al, 2002). The term land value can be viewed in two perspectives (Baum and

Corsby, 1988). They view value as most likely selling price of a property or

land, they also see land value in two (2) ways. First market values property as

the estimated selling price of an estate or land it is the value in exchange for an

estate (Baum and Makim, 1981). The Royal Institute of Chattered Surveyor

(RICS) (1981), defines market value as the best price at which an interest in a

property might reasonably be expected to be sold by private treaty at a date of

valuation together with al conditions necessary for exchange of the property

(RICS, 1981). The American Institute of Real Estate Appraisers (AIREA)

defines market values as the most probable cash, terms equivalent to cash, or in

26
other precisely revealed terms for which the appraised property will sell in a

competitive market under all conditions requisite for fair sale, with the buyer

and seller each acting prudently, knowledgeable, and for self-interest and

assuming that neither is under undue duress (AIREA, 1984). The Interbational

Asset Valuation Standards Committee (TAVSC) defines market value as the

estimated amount for which an asset should exchange on the date of valuation

between the willing buyer and a willing seller in arms length transaction, after

proper marketing were both parties are not compelled into the transaction

(TIAVSC, 1992). Secondly, value is seen as an investment value or value in

use. According to AIREA (1983) the value in use or investment value is that

worth of a specific property base on its productivity. Baum and Makim (1981)

agreed that value in use and investment value are different from market value,

except if the purchaser or investor is normal or typical within the market.

It can be inferred from various models of urban land use that there is a

serious relationship between land use, land value and the changes

accompanying growth and expansion of urban areas (Lean and Goodall, 1973).

The Von Thunen model of agricultural land use states that land values are

affected by nearness to market centers for agricultural products. Also Burgess

(1925) suggests that land values decreases as one shifts away from the Central

Business District (CBD) that the center of the city pays highest for land use

while the outer zones of residential areas pays lower till it is lowest at the

periphery. All this is related to transport cost from the CBD. Another model by

27
Hommer Hoyte (1939) also states the influence of transportation or

communication routes towards the development of land use in sectors and

reflecting different land values in the various sectors (Bradford 1978).

Further models of land values include those of Alonso (1964), Kain (1968)

and muth (1969), these models are called the economic equilibrium theory

(Agbola etal, 2002), these models argue that the pattern of land use and land

values are mutually determined with value in the urban land being the resultant

effect of economic rent or ground rent. William Alanso (1964) developed a bid

rent curve in an equilibrium which fairly approximates the concentric ring

theory of Burgess and an extension of Von Thunen’s theory. His theory gives

land use, rent, intensity of land use population and employment as a function of

distance to the CBD, and as a solution of an economic equilibrium for the

market space. The bid rent and transport budget such that if transportation cost

were higher, hen the amount they would pay for rent is lower. This same theory

was proved by Kain in 1968 and Muth in 1969, only those who can afford high

transport cost will live far from the CBD (Watkins, 1980).

All the models depicts that the extreme outer areas occupied by high

income status groups which wield tremendous socio-political influence. While

the inner slums who pay higher rent due to the closeness to the CBD is occupied

by low income individuals (Ogunjumo and Olatubara, 1998). Several criticisms

are put forward about bot the structural configuration of the theories and some

of their specific attributes. One of the anomaly of the Burgess (1925) theory is

28
that of the poor people living close to the city center on high value land and rich

living in the periphery were land is cheaper, forgetting that transport cost

compensate the other remaining value for rent at the periphery. It was also

pointed out that although significant change has occurred from the CBD with

distance, the models did not show a greater rapidity of change at any zonal

boundary when gradient analysis was carried out (Agbola 2002).

The models are applicable today since many changes have taken place

within the cities, such as coalescence of towns where the Central Business

District (CBD) moves outward from the center towards the high class sector and

take over the large residence for office use which gives larger returns (bid rent)

(Kent and Bradford, 1978). However, the models have shown to be seen in

reality. Kent (1978) observed that push factors make for repelling people which

is characteristics of invaders or the increasing value of property (land). He also

stated the pull factors which allows for higher status people of better areas

becoming available in other parts of the city is as a result of the invasion (Kent

and Bradford, 1979). As urban growth alters the pattern of land use, the pattern

of land values changes (litechfiekd, 1969). Where mixed uses are harmonious,

land value may progress rather than regress (Agbola etal 2002).

2.5 FACTORS AFFECTING OR DETERMINING LAND VALUES

There have been a lot of argument an the concept of value as it relates to

land use. The major point of argument has been on attempts to distinguish

market from market price (Oduwaye, 2002).

29
 The market value of a particular land is defined as that amount of money

which can be obtained from or for the interest at a particular time from persons

able and willing to purchase it (Lawrence, Rees and Briton, 1962). TIAVSC

(1992) defines market values as the estimated amount for which an asset should

exchange on the date of valuation between a willing buyer and a willing seller

in an arms length transaction, after proper marketing were in the parties had

each acted knowledgeably, prudently and without compulsion (Baum and

Cosby, 1988). On the other hand, market price is the highest price in terms of

money which a property (Land) should bring in the competitive and open

market under all conditions requisite to fair sale with the buyer and seller each

acting prudently, and knowledgeable, and assuming the price is not affected by

undue compulsion (Oduwaye, 2002). From the definitions it can be deduced

that both market price and market value are quite similar as they represent a

value for exchange, but are different in the sense that market value is and

estimate value while the market price is the highest value at which a property

can be bought.

The price of land in urban areas allocates space among alternative uses,

and failure in the allocative function of land values are differently related to

certain factors affecting urban areas (Asabere, 1981). Litchfield (1974) agrees

that certain influences affects land values in urban centers stating such factors

like, socio economic, physical, environmental and institutional factors to affect

land values includes those of institutional, cultural and economic factors.

30
Asabere in the same study gave the factors that affect land values as include;

distance from the CBD, distance to the sea, government zoning, land tenure

effects, time scale and site services (infrastructures). This in similar manner,

Oduwaye (2002) in his study in Lagos gave factors that affect land values

including accessibility, technical infrastructures, rents or cost of land, and the

quality of environment.

Interestingly, Omoogun (2004) stated that the factors that affects land

values includes; accessibility, neighbourhood character, availability of public

utilities, location and also rental or cost of property. In the same vain, Bello

(2004) gave the factors that affects land values to include; the type of land use,

accessibility, complimentarily, capital improvements in the roads and building,

physiographic properties of the land, then the demand and supply of the land.

The demand of land stock is a derived demand at the same time land is

demanded as a financial asset (Salazar et al, 1990). Functional institution

prefers land as collateral for credit operations because, mong other reasons, land

is immobile, it’s depreciation is small and its values is not eroded by inflation

(Roserizweig, 1986). The demand for land for housing and agriculture, also for

infrastructure and environment related projects and as an asset when at a high

degree has to be met by its supply (Salazar 1995). Dowal (1989) argues that the

ample supply of land in Bangkok, strong competition among developers and

builders, and an adequate supply of of finance are efficient operations of the

land market but among the significant economic determinants of land demanded

31
for specific use in order for the land to command high values, otherwise it

would be free good and therefore this goes a long way in affecting land value

(Brigham, 1971). He also said that, when demand for a landed property is

higher than supply, that landed property be it residential or otherwise will

command great value (Agbola, et al, 2002).

Accessibility is a concept used to indicate the advantage of particular

locations. The utility of various sites depends on monetary considerations such

as travelling cost for residential land use, the greater the accessibility the greater

the value. Therefore, the pattern of urban accessibility will produce a pattern of

urban land use which will be reflected in the pattern of urban land values

(Afolabi, etal, 2004).

The accessibility of public infrastructures or utilities like public water

supply, electricity, and roads will naturally enhance the demand for land and

hence the values of property in a given location which lack such infrastructure

will adversely affect such demand which in turn affects land value. Land value

is also affected by the quality of neighbourhood, allowing generally for some

difference in types of structures and finishing, certain neighbourhood enhance

the values of property. While repulsive environment exert negative influence on

value. Quite understandably, effect on property prices varies with the type of

externality considered for instance, according to Nelson et al (1992), the

presence of land fill within two (2) miles from a property (land) can cause its

values to drop by 6 percent. Also price may deprecate by some nine (9) percent

32
as a result of noise from a nearby high way or airport respectively (Emerson,

1972) also with proximity to power lines, the detrimental effect of values is

estimated at about 10 percent (Delamey and Tammons, 1992). However,

cleanliness is of a neighbourhood enhances property values, so does less

population command high value of land prices in an area (Omoogun, 2004).

Locations forms the basis for real estate valuation, landed property values

are highest in the position of great accessibility to infrastructure, services,

predominant land use, and planning control in the area (Hewatt, 1994) stated

that location is of fundamental importance in real estate valuation for instance

identical property in any of the Nigerian cities are unlikely to sell for the

sameprice, those price variations are due mainly to difference in location.

Abelson (1998) reflected on the federal governments study in 1990 on the

variation of prices of houses in three (3) cities (Sidney, Melbourne and

Adelaide) stating that 75% of the variations in housing price is caused by

proximity to Central Business District (CBD). He further gave that high values

or residential neighbourhood in places like Victoria island and Ikoyi against

Ikeja in Lagos state is due to their good location and neighbourhood which

facilitate proximity to the Central Business District (CBD) (Omoogun, 2004).

Prominent institutional factors affecting land values including those of

Government, financial institutions and public corporations government

institutions or instruments such as zoning, master plans, regulations, rent laws

and land acquisition policies. The type of ownership attracts value than one with

33
out certificate of occupancy also rent laws is expected to influence the

maximum amont or rent that can be collected in residential property on different

parts of a city (Oduwaye, 2002).

Furthermore, time factor also affects the values of land, this is seen when

dominant land use changes from agricultural to Urban, both in the industrialised

and developing countries (Drabkin, 1977). Land kept for the purpose of Urban

development for a period of 20 years gives an interest of 15% the price of the

land increase more than 16 times the original price over these years

(Christopher, 1977).

From the above discussions, it can be concluded that there is an intrinsic

and symmetrical relationship between land use and land value. The urban land

depends on location, location depends on convenience, convenience depends an

nearness and so value depends on nearness (Hurd, 1903). This is relatedto the

focus of thus study as various values at different locations will be critically

considered as it proves from the above that land values varies with location and

convenience.

2.6 LAND MARKET AND ITS IMPERFECTIONS

Land as a factor of production is needed for the provision of housing and

infrastructure services at the same time. It is also needed as a financial asset

(Salazar et al, 1990).

This review of literature will never be complete if previous works of land

values, its change and factors that makes for the change in the market are not

34
taken into consideration. Urban land market literatures began with the work of

Isard (1956), Alonso (1964), muth (1961) and mills (1967). This set of

literatures concentrated most on the activities of transport cost as a major

determinant of land prices in urban centers, together with the market

mechanism, the sorting process and that its provides or allocates space to

activities both in quantity and locational aspects according to demand and

supply relationship and a least cost concept in the equilibrium system (Agbola

et al, 2002).

Drabkin (1971) provided a lot of data a nd models on the levels and

increasing land values when dominant land use changes from rural agriculture

to urban both in industrialised and developing countries like Japan, Taiwan,

mexico, India, Jamaica, Phillippenes and ofcourse Nigeria.

According to Drabkin (1971), the higher land prices in the developing

countries is as a result of certain factors; First, demand for land by small

extremely prosperous community linked with international business for

development. Also despite vast land around the cities in developing countries,

there is still shortage of vacant land and only small amounts of the lands are in

the market at any moment. This is because land owners are not compelled by an

appropriate tax system to either use or sell the land. Land owners therefore,

hoard the land causing an artificial scartcity and hence causing high price of

lands in the market which is one of the most profitable economic entreprise.

Drabkin (1977) also provided solutions to the problem that an appropriate

35
taxation system, efficient land use legislation and an active municipal land

supply policy (base largely on purchase of land by government agency when

prices are still low). But so long as the land owners have a powerful voice in the

government of these developing countries, none of these radical changes will be

forth coming.

Criticisms have hit the Drabkins solutions, this was seen in the works of

Koehn and Koehn (1979) in Addis Ababa before 1969 were few estates owners

controlled virtuallay all the lands around the city and played all the games of

speculation mention by Drabkin, but immediately after the revolution in 1969,

all lands around the city was Nationalised and the market ceased to exist. This

was done in other countries with less radical systems like Tanzania in 1963,

Zambia in 1975 and Nigeria in 1978, where all freeholds lands were turned into

lease holds. From the year 1971 vacant land prices at the edge of two (2) cities

was in the order of $8 US dollars for panda and $10 – 20 US dollars for

Bangkok with the former lover than Drabkins proposal of $15 – 30 US dollars

(Koehn and Koehn, 1979).

Van Den Berg (1984), in a study in Panta suggests that land prices shifts or

reduces from the built up areas towards the rural areas, also other factors like

communication lines, rail way lines are responsible for the out ward extension

of lower land prices rather than hoarding by Drabkin. Badhra and Brandao

(1993) argued that price of land declines from the center of the city. They see

location for business and increasing transportation cost to determine the location

36
of activities. Urban activities that use land more intensively will either move

away from the center or substitute capital for land. Land market must be flexible

to permit these adjustments to take place.

Parties involved in the land trade (market) includes the original village

owner cultivator, various brokers (speculators) and urban builder, each level of

transaction raise land price a bit or a lot (Lesserve, 1975). Land brokers or

subdivides are relatively small in number compared to the rural land sellers but

seem to be the ones manipulating the market this results from the high supply of

land than its demand. (Van Den Berg, 1984). Christopher (1977) relates that

around Satisbury even before 1900, farm were sold by pioneer original owners

to speculative companies who sold it at high prices this led to the development

of residential townships in the 1920’s. Ministry and government departments

prominence in the land market securing plots for their employees could have

contributed to this trend, this could be considered as land speculation with

public funds to stabilize the land market in the interest of urban dweller

(Lesserve, 1975).

The value of land at a particular point in time and space reflects pressure in

the market place, the overall condition of the economy, the preference of

various actors involved and their abilities and levels of knowledge and the

general factors of social, economic and institutional that impinge upon the value

or real estate (Asabere, 1981). Dowall (1989) in analysis of housing market in

Bangkok argued that an ample supply of lands, strong completion among

37
developers and builders and an adequate supply of finance are necessary

conditions for the efficient operation of the land market, especially in fast

growing cities of developing countries. The three (3) conditions mentioned

apply to urban land markets (Salaza et al, 1995).

Furthermore, land markets require ample supply of land for residential

development and they must be free of bottle necks and constraints which slows

delivery of lands to households or home builders, this should be met with

adequate infrastructures, like water, electricity, drainage system, roads. Also,

there should be a very strong competition in the market between land builders

or developers to prevent monopoly and hoarding of land altogether with an

efficient Government legislation on land use and ownership. Finally, for

efficient land market, ample supply of financial capital to support residential

construction and the fund-lon term mortgages for buyers (Agbola, et al, 2003).

All these affects how and what quantities of land would be available for

different uses including residential.

CHAPTER THREE

METHODOLOGY

38