THE IMPACT OF URBAN LAND USE CHANGES ON RESIDENTIAL PROPERTY VALUES The Case of Bole Sub City, Addis Ababa
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Date
2018-10
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EiABC
Abstract
study investigates the impact of urban land use changes on residential property values. For this, a case study approach was employed by the CMC-Safari area of Bole sub-city, Addis Ababa-Ethiopia. The primary data was gathered from 50 households and real estate brokers practicing in the study area using structured questionnaires, 15 key informants through interviews and observation. Brief survey of literature and different published and unpublished data available at different offices was also part of the information collected using secondary sources. The data collected were analyzed with Relative Importance Index (RII) technique, regression analysis, and simple descriptive analysis, particularly with frequencies and percentages. Also, valuation of affected residential properties was conducted, value changes trend analysis was carried out using appropriate software applications. The findings of this study indicated that the study area has undertaken a significant level of change in land use in the last two decades from farmlands to different urban land uses such as residential, commercial, mixed-use, social service, greenery & open space, administration, and small-scale manufacturing. Based on the RII value, housing demand (0.956), road construction and transport access (0.896), agglomeration of business activities (0.848), utility development (0.832) are identified as the most significant attributes (in their order of importance) for land use change that affected residential property values in the study area. Other important factors discovered include broker’s interference, social class influx (high-income groups), an intervention of financial institutions, and real-estate development while public service development was found to be the least influential determinant. The regression analysis result have shown that, 81.7% of the variation in the dependent (single- family residential rental value) variable can be explained by variations in the independent variables (determinants of land use change). It was also found that land use change positively affects residential property values and correspondingly increases its value (both rental and sale) in the study area. The study suggests that there is need to put an efficient scheme to minimize broker’s negative role in distorting value determination. There is also a need to emplace a land value capture tax on owners for the benefits gained from public investment (example: - road construction).
Description
A thesis submitted to the school of graduate studies of Addis Ababa University, Ethiopian Institute of Architecture, Building Construction and City Development (EiABC), in partial fulfilment for Master’s degree in Urban Land and Property Valuation
Keywords
Addis Ababa, Brokers, CMC-Safari, area, Impact, Land use change, Residential, property values