THE EFFECT OF RURAL URBAN MIGRATION ON PROPERTY VALUES IN OSOGBO OSUN STATE

THE EFFECT OF RURAL URBAN MIGRATION ON PROPERTY VALUES IN OSOGBO OSUN STATE

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Property is a multi-dimensional product and the number and nature of factors that influence its value are equally of different kinds. Property values tend to increase in areas with expanding transportation networks and population growth (Goldberg, 2017). The movement of people from rural to urban areas is a common occurrence in Nigeria which have greatly impacted on property value in urban centres or cities in Nigeria. Rural urban migration involves the movement of people from their respective rural households to urban centers in search of better living conditions. The movement poses some problems in the rural as well as in the urban centre even though there are benefits derivable from it (Mini, 2000).

Properties have continued to attract the investment interest of real estate developers as a result of population growth mostly due to rural – urban migration. This is because of the increasing demand for properties such as residential and commercial properties in the urban centres (Olujimi and Bello, 2009); and because of the increase in rent (value), which is usually attached to the property (Oduwaye, 2017). Several factors exist that determine value of real properties. According to Britton (2019), determinants of individual property value include location, time, property interest, state of repair, accommodation details, services/facilities and rural urban migration.

Rural-urban migration can be seen as the physical transnational of individuals or group of people from rural areas to urban centers. Rural-urban migration is the most important aspect of labour migration because it affects the structures and composition of the population. The effect of rural urban migration on property value is far more than merely a demographic or quantitative one. Whereas the rural urban migration has result in population growth and urbanization in  developed countries was the result of rapid industrialization, the growth in Nigeria like most other developing nations is a consequence of the “push” of the rural areas and the “pull” of the town (Kehinde, 2010). The majority of African urban centres developed and continues to develop as commercial-administrative and servicing entities. In Nigeria like in most other developing countries, the growth of the tertiary sector is often a symptom of poverty and stagnation rather than economic development. Consequently, population growth in most of the African countries is characterized by a growing gap between employment opportunities and demand, and an ever increasing shortage of urban services and facilities which are accessible to a diminishing share of urban population.

Gross migration refers to the total number of migrants moving into and moving out of a place, region or country, while net migration is the balance between the number of migrants coming into and moving out of a place, region or country. Migration can be considered as a significant feature of livelihoods in developing countries to pursuit better living standards. Central to the understanding of rural urban migration flow is the traditional push-pull factors. “Push factor” refers to circumstances at home that repel; examples include famine, drought, low agricultural productivity, unemployment etc. while “pull factor refers to those conditions found elsewhere (abroad) that attract migrants.  There are many factors that cause voluntary rural-urban migration, such as urban job opportunities, housing conditions, better income opportunities etc. There is no doubt that, apart from these factors, urban areas also offer a chance to enjoy a better lifestyle. Pull factors have predominated- urban environment provides better employment and income opportunities. It is on bases that this study seek to examine the effect of rural urban migration on property values in Osogbo Osun State.

1.2       Statement of Problem

World population has risen to over 6.3 billion people and by 2030 over 60 percent of the world’s population is expected to be living in cities mostly as a result of rural urban migration. There are now over 400 cities with a population of over a million people (UN-Habitat, 2015).  Rural urban migration has resulted in population growth which is an underlying factor for the demand of property, without new supply of dwellings, it pushes up the prices for both renting and purchasing dwellings. The problem is further compounded in many of the large cities with a change in living preferences that has resulted in a fall in household rates, particularly in the western world. Hence, population movement to the city that is rural urban migration and fewer people per household means the supply of more housing is needed. The rural urban in Osogbo Osun State has assumed a geometrical proportion, the provision of urban infrastructure and housing to meet this demand is, not at commensurate level. This has resulted in acute shortage of housing / residential properties to the teeming population. The inadequacies are far-reaching and the deficit is both quantitative and qualitative; even those households with shelter are often subjected to inhabiting woefully deficient structures as demonstrated in the existence of slums and shanties in and around the city of Osogbo. They reside in the slums and squatter settlements scattered around the city and are predominantly engaged in informal economic activities which encompass a wide range of small-scale, largely self-employment activities. This problem can only be brought under control through urban consolidation and/ or development of properties in the urban center. It is on this note that this study seek to examine the effect of rural urban migration on property value in Osogbo Osun State.

1.3       Aim and objectives of the study

            Aim:

The aim of this project is to examine the effect of rural urban migration on property  value in Osogbo – Osun State.

Objectives:

The specific objectives of this study include:

1. To determine the cause of rural urban migration in the study area
2. To evaluate the state of properties in Osogbo – Osun state
3. To determine the effect of rural urban migration on the property value in the study area
4. To identify other factors affecting property value in the study area.
5. Assess the impact of population growth on the demand for residential properties in the study area

1.4       Research Questions

1. What are the causes of rural urban migration in the study area?
2. What is the state of properties in Osogbo – Osun State?
3. What are the effects of rural urban migration on property value in the study area?
4. What are the other factors affecting property value in the study area?
5. What is the impact of population growth on the demand for residential properties in the study area?

1.5       Significance of the study

The importance of the research is to be appreciated by all since concepts of rural urban migration and its effect on properties value affects everybody irrespective of class, status or occupation.

However, the study will be importance to the following categories of persons.

1. Government (policy makers): The government will benefit from the study since it will provide the basics for making policy changes and formulating future policies. It helps the economy in planning for development especially in real estate development.
2. Students: The study is important to students since it will reveal more details and provide more information for those who are interested in finding out rural urban migration trends in Nigeria and its consequences on properties value in Nigeria and also for further studies.
3. Research: This study will provide more information for further research about the rural urban migration and its effect on property value in Osogbo – Osun state.
4. Investors in Real Estate: Real estate investors will benefit from the findings of this study as it enlighten on the effects of rural urban migration on property values in Osogbo, it will put them in better position to make inform decision on how to invest their money.

1.6       Scope and limitations of the study

The scope of this study covers only the effect of rural urban migration on residential property value in Osogbo Osun State. Other properties such as commercial properties, industrial or educational properties will not be included in this research. Geographically, the study is limited to Osogbo the Osun state capital.

Limitations

The researcher faced various problems when carrying out this field study. Some of these challenges included:

1. Some respondents were unwilling to fill the questionnaires since they were suspicious about the study. Many perceived it as sharing very vital information which they were not ready to furnish the researcher with.
2. Delays were experienced from the respondents who took very long to complete the questionnaires and constant postponement of the picking date proved to be very frustrating to the researcher.
3. At times some of the respondents did not fill in the questionnaires adequately and ignored certain sections that required the giving of opinions which made it difficult for the researcher to make adequate conclusions.

1.       Operational definition of terms

Migration:  Migration refers to permanent or semi-permanent change in the place of residence of an individual or a group of individuals from one location to another.

Property: This is the embodiment of tangible ownership right or bundles of right in real estate. It could also be described as a concept of right which can be held separately (Babatunde, 2013)

Population Growth: Population growth is the increase in the number of people that reside within a state or country.

Rental Value: This is the worth or value of property in an open market. It is also the value arising out of the lease or renting out of a property on a periodic basis usually yearly.

Residential Property: it is a building that is used or suitable for dwelling purpose. They are dwelling house such as bungalows, duplex, detached houses, semi-detached houses, etc. (LBTT 4010)

1.8       The study area

The early history of Osogbo is essentially the legendary account of the spirit-world; it is the history of the early people whom we call the spirits and fairies. This is in line with Yoruba traditions, which use mythical stories to explain the origins of the ruling families of an early Yoruba state.

Osogbo according to Yoruba oral history had been founded as early as Oduduwa period. Oso-igbo, the goddess of Osun River, was the Queen and original founder of Osogbo. She was credited with many important achievements, which helped to establish the settlement.

Osogbo the capital of Osun lies on coordinates 7°46′ North 4°34′East with an area of 47kmsq. According to the 2006 Population and Housing Commission Census, the city has a population of 156,694 people. Osogbo shares boundary with Ikirun, Ilesa, Ede, Egbedore and Iragbiji and is easily accessible from any part of the state because of it’s central nature. It is about 48km from Ife, 32km from Ilesa, 46km from Iwo, 48km from Ikire and 46km from Ila-Orangun.

Osogbo is a commercial and industrial centre. This started in 1907, when the British Cotton Growing Association sited an industry for growing and ginning of cotton. The Nigerian Tobacco Company (NTC) built its first factory in Osogbo. In this same year, a major turning point for the city which helped in its industrial and commercial development occurred.  The railway tracks were constructed linking it to other parts of Northern Nigeria.  This attracted people from far and near.

The Ataoja of Osogbo is the traditional title of the King and he is the political and spiritual heads of Obas and Chiefs in Osogbo and Olorunda Local Government Areas.

Osogbo is famous for the annual Osun Osogbo Festival which attracts tourists from different part of the world.