PROJECT PROPOSAL

ON THE TOPIC

INVESTIGATION OF THE EFFECT OF FACTORS OF RENTAL

VARIATION ON COMMERCIAL PROPERTY INVESTMENT IN
NASARAWA LOCAL GOVERNMENT AREA OF NASARAWA STATE
1.1 BACKGROUND OF THE STUDY
Commercial property investment is a vital aspect of the real estate sector, significantly
contributing to economic growth, providing business spaces, and generating substantial
returns for investors. Commercial property investment is also a cornerstone of urban
economic development, providing the physical infrastructure necessary for businesses to
operate and thrive. In regions experiencing rapid urbanization and economic transformation,
such as Nasarawa Local Government Area (LGA) in Nasarawa State, Nigeria, the dynamics
of commercial property markets are particularly critical. These dynamics are often influenced
by a myriad of factors, with rental variation being one of the most significant. Understanding
how rental variations impact commercial property investment is essential for investors,
policymakers, and urban planners who aim to foster sustainable economic growth and
development. the central region of Nigeria, has undergone significant changes in its economic
landscape over the past few decades.
 1.2 STATEMENT OF PROBLEM

 The commercial property market in Nasarawa Local Government Area exhibits significant
rental variations, which can impact the economic stability and investment attractiveness of
the region. Despite the evident fluctuations in rental prices, there is limited empirical research
identifying and analyzing the factors contributing to these variations. Understanding these
factors is crucial for stakeholders, including property developers, investors, policymakers,
and businesses, to make informed decisions. Hence, This study aims to investigate the effect
of various factors such as location, property size, economic conditions, demand and supply
dynamics, infrastructural development, and governmental policies on the rental variations of
commercial properties in Nasarawa Local Government Area. By identifying and analyzing
these factors, the research seeks to provide insights that can help stabilize the market,
enhance investment opportunities, and contribute to the region's economic growth.
 1.3 AIM AND OBJECTIVES OF THE STUDY
 Aim:
 The main aim of this study is to investigate the factors affecting orental variations on
commercial property investment in Nasarawa Local Government Area, focusing on how
these variations affect investment decisions, property values, and the overall commercial
property market.
 Objectives:
 To analyze the historical trends and patterns of rental prices for commercial properties in
Nasarawa Local Government Area.
 To identify the key factors contributing to rental variations in the commercial property
market within the study area.
 To assess the impact of rental variations on the value and attractiveness of commercial
property investments.
 To examine how rental fluctuations, influence the investment decisions of current and
potential investors in the commercial property market.
 To evaluate the effects of rental variations on the financial performance and sustainability
of commercial property investments.
 To provide recommendations for investors, property owners, and policymakers on
strategies to manage rental variations and enhance the stability and growth of commercial
property investments in Nasarawa Local Government Area
 1.4 RESEARCH QUESTION
 What are the key factors contributing to rental variations in the commercial property
market in Nasarawa Local Government Area?
 How does the location of commercial properties influence rental variations and subsequent
investment decisions?
 In what ways do property size and type affect rental rates and commercial property
investment in the area?
 What impact do economic conditions, including demand and supply dynamics, have on
rental variations and commercial property investments?
 How does infrastructural development affect rental prices and the attractiveness of
commercial property investments in Nasarawa Local Government Area?
 What effect do governmental policies and regulations have on rental variations and
commercial property investment decisions?
 What strategies can property owners, investors, and policymakers adopt to manage and
stabilize rental variations to foster a robust commercial property investment environment in
Nasarawa Local Government Area?
1.5 SIGNIFICANCE OF THE STUDY
The following are the significance of the study
Enhanced Understanding of Rental Dynamics: This study will provide a detailed analysis of the factors
causing rental variations in Nasarawa Local Government Area, contributing to a deeper understanding of the
commercial property market dynamics.
Informed Investment Decisions: By identifying and analyzing the key factors affecting rental rates, this
research will equip current and potential investors with crucial information to make better-informed
decisions regarding commercial property investments.
Policy Formulation and Implementation: The findings of this study will be valuable for policymakers in
designing and implementing regulations that can stabilize rental markets, thereby fostering a conducive
environment for commercial investments.
Strategic Planning for Property Owners and Developers: Property owners and developers will benefit
from insights into the determinants of rental variations, enabling them to strategize effectively to maximize
rental income and investment returns.
Economic Growth and Stability: A stable and predictable rental market is essential for economic growth.
By addressing the factors that cause rental variations, this study aims to contribute to the overall economic
stability and growth of Nasarawa Local Government Area.
1.6 THE SCOPE OF THE STUDY
This study will focus on Identifying and defining the factors that
influences rental variation in commercial properties investment within
Nasarawa local Government area Nasarawa state. Examples of factors
could include location, property size, amenities, economic conditions,
demand-supply dynamics, etc.
2.1 CONCEPT OF COMMERCIAL PROPERTY INVESTMENT
Commercial property investment involves the acquisition, development, and management of
properties for income generation and capital appreciation. Rental variation refers to
fluctuations in rental rates due to factors such as location, property characteristics, market
conditions, and demand-supply dynamics. The conceptual framework integrates these key
concepts to understand the relationship between rental variation and commercial property
investment in Nasarawa Local Government Area.
Definition and Scope
Commercial property investment involves the acquisition, development, and management of
properties intended for business purposes rather than residential use. These properties include
office buildings, retail centers, industrial facilities, hotels, and mixed-use developments. The
primary goal of commercial property investment is to generate income through rental
payments and achieve capital appreciation over time.
2.5 FACTORS AFFECTING RENTAL VARIATION
. Factors Affecting Rental Variation:
Location: Research indicates that the location of commercial properties within Nasarawa Local
Government Area significantly influences rental rates. Properties located in prime areas with high foot
traffic and accessibility to amenities tend to command higher rents compared to those in less desirable
locations.
Property Characteristics: Studies have shown that the size, layout, condition, and amenities of
commercial properties play a crucial role in determining rental rates. Properties with modern facilities,
ample parking space, and flexible use options often attract higher rents.Market Conditions: Economic
factors such as GDP growth, inflation, interest rates, and local market dynamics affect rental variation in
commercial properties. During periods of economic expansion, demand for commercial space tends to
increase, leading to higher rents. Conversely, economic downturns may result in decreased demand and
lower rental rates
.Demand-Supply Dynamics: The balance between supply and demand for commercial properties in
Nasarawa Local Government Area impacts rental variation. Research suggests that oversupply of
commercial space relative to demand can exert downward pressure on rents, while limited supply in high-
demand areas may drive rents upward.2. Commercial Property Investment:
.
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
Research design is a strategy or approach to be used for conducting a scientific enquiry, a
research design is a plan or blue print that specifies how data relating to a particular problem
should be collected and analyzed.
In this study, a research survey will be conducted to supplement other sources of data; this
includes textbooks, journals and other printed materials. Survey research studies both large
and small population to discover the relative incidence, distribution and interrelation of
sociological and psychological variables. Survey research is more reliable for this study
because it enables samples to be selected from the entire population in other to analyze data,
which would allow the researcher to make references on characteristics of the identified
population.
Therefore, a well-constructed questionnaire will be used to pose relevant questions to the
respondents.
3.2 POPULATION OF STUDY
The population of the study comprises the population of Nasarawa LGA and limited to them
alone. The population of study is 115 (one hundred and fifteen) respondents. (I.e.
Landlords/Owners of commercial properties-50,

3.3 SAMPLE SIZE AND SAMPLING TECHNIQUE

Ndagi (2000:2002) defined sample size as “a limited number of elements selected from a
population which is a representation of the population.” Hence,
Sample size determination involves showing how the representative of that population will be
selected. According to Harper (1971) is a group of items taken from the population for
examination. It is simply a smaller part of the population. Samples are useful because they
allow the researcher to examine the characteristics of the population.
The Yaro Yamani statistical formula will be adopted for this Research work.
3.5 SOURCES OF DATA COLLECTION

In a bid to gather the data used in this research, various

means will used depending on the type of information
sought. The chief sources of data include.

1. Primary Sources
2. Secondary Sources
3.6 INSTRUMENT FOR DATA COLLECTION

Owing to the area that this study will covered, questionnaire will be designed for data

collection. The questionnaire will be personally designed and administered to the respondents

while retrieval will be equally through the same process. It consists of a set question

designed to gather information data for analyzing the result of which are used to answer the

question or test relevant hypothesis. The questionnaire will be prepared in brief structure with

multiple choice close ended answer and simple opened questions. The questions were clear

and concise. Pilot test was used to determine the strength of work.
3.7 METHOD OF DATA COLLECTION
The researcher will administer the questionnaires personally to the respondents. The
researcher will vet the outlet routinely issuing the questionnaires to the residents and firms
and also making sure that the issuing of double questionnaire is avoided and ensured
minimum loss of questionnaires. With the questionnaire that will be administer/distribute to
about 89 respondents,

3.8 METHOD OF DATA ANALYSIS

A well structure presentation, analysis and interpretation of data, tabular, statistical and
textual modes of data presentation will be use. The responses for each relevant question in the
questionnaire will be represented in tables.