EVALUATION OF THE ECONOMIC IMPACT OF RESIDENTIAL PROPERTY CONVERSION IN ILORIN METROPOLIS

Abstract

Land use conversion involves determining the highest and best use of land. Certainly land use conversion occurs when a specific parcel of land is converted from its original designation due to economic rents, consideration of highest and best use. Inconsistent land use conversion overtime can alter the city’s structure and create nuisances, hindering the effective functioning of both people and the environment across the metropolis. It is on this basis that this study evaluates the economic impact of residential property conversion to commercial use in Ilorin metropolis. The study attributed the observed changes in property use in the study area from residential to commercial to be mostly retail shop, followed by mixed use and office spaces. Residential property conversion was discovered to become rampant in the year 2020 and beyond as a result of the covid 19 pandemic where everybody wanted to maximise profit. The major significant factors identified were increase in rental value of commercial property, increase in demand for commercial space and economic gain. The analysis revealed a strong positive relation between rent before and after conversion. Data was collected from practicing Estate Surveyors and Valuers who are involved in property development. Information was also gathered from property developers and stakeholders in real estate development. Personal visit was made to some practitioners’ offices and private sectors in real estate industry and interviews were conducted on some of them so as to gather relevant information. Secondary data was also collected from textbooks, past theses, past journal papers and other academic work. Conclusion was drawn from the findings and useful recommendations were proffered.