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Empirical Conceptualisation Of Residential Rental Values In Ghana – Understanding Location And Neighbourhood Effects

Author

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  • Emmanuel K. Gavu

Abstract

Purpose – Based on empirical data, the purpose of this paper is to model the residential rental market in Ghana in order to examine the effects of location and neighbourhood attributes on rental values. Design/ Methodology/ Approach – To situate the research in its proper context, an overview of the residential rental market dynamics are provided. Empirical testing of submarkets are performed based on prior delineations. Based on hedonic modelling results, the effects of location and neighbourhood attributes on rental values are analysed. Findings – The data gives credence tot the fact that in Ghana’s residential rental housing market, structural attributes of properties have the greatest effect on rental value, than location and neighbourhood attributes. Research limitations/ implications – Provides a macro overview into the determinants of rental value based on empirical data and offers property investors a better understanding of the rental housing to ensure profit maximisation. Practical implications – The research provides property investors an overview of useful insights to maximise returns on their investments. This is achieved by providing an understanding of price movements based on submarket dynamics. More so the assumption of urban economic models that rental values decrease with increasing distance from the Central Business District (CBD) is tested. Originality/ value – This research is one of the first attempts to quantify the effects of location and neighbourhood attributes in Ghana’s residential rental housing market.

Suggested Citation

  • Emmanuel K. Gavu, 2019. "Empirical Conceptualisation Of Residential Rental Values In Ghana – Understanding Location And Neighbourhood Effects," AfRES 2019-052, African Real Estate Society (AfRES).
    • Handle: RePEc:afr:wpaper:2019-052
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    References listed on IDEAS

    as
    1. Bourassa, Steven C. & Hoesli, Martin & Peng, Vincent S., 2003. "Do housing submarkets really matter?," Journal of Housing Economics, Elsevier, vol. 12(1), pages 12-28, March.
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    3. Peter F. Colwell, 1990. "Power Lines and Land Value," Journal of Real Estate Research, American Real Estate Society, vol. 5(1), pages 117-128.
    4. Goodman, Allen C., 1978. "Hedonic prices, price indices and housing markets," Journal of Urban Economics, Elsevier, vol. 5(4), pages 471-484, October.
    5. Sandra Buchel & Martin Hoesli, 1995. "A Hedonic Analysis of Rent and Rental Revenue in the Subsidised and Unsubsidised Housing Sectors in Geneva," Urban Studies, Urban Studies Journal Limited, vol. 32(7), pages 1199-1213, August.
    6. Wilfred K. Anim‐Odame & Tony Key & Simon Stevenson, 2010. "Residential market development in sub‐Saharan Africa," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 3(4), pages 308-326, October.
    7. Harrison, David Jr. & Rubinfeld, Daniel L., 1978. "Hedonic housing prices and the demand for clean air," Journal of Environmental Economics and Management, Elsevier, vol. 5(1), pages 81-102, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Empirical; Ghana; housing market; Location; Neighbourhood; Rental value;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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