The Impact of Land Use Changes on Rental Values in Lagos Island Communities from 2002 to 2022

Purpose: Indiscriminate and unauthorised land use change has a severe environmental impact, one of which is rental value. This study examines the influence of land-use change on rental values in the Epetedo, Lafiaji/Ebute, and Sandgrouse communities from 2002 to 2022. Design/Methodology/Approach: In an endeavour to examine the change in land use and its relationship with rental value change, the study sets out to test three hypotheses that have been put forth, and these are that there is a positive relationship between land use change and rental value change in 2002, 2012, and 2022. Findings: The regression analysis showed that land-use change significantly affects rental values over time. The R2 of 0.703 indicates the magnitude of land-use change relative to the increase in rental value, as it is 70.3%. Spearman correlation coefficient also showed the strength of the relationship between the land use change and the rental value in the years 2002: rs(29) = 0.72, p<0.001; 2012: rs(26)=0.71, p<0.001, and 2022: rs(26)=0.27, p>0.001. Research Limitation: However, the study is focused on Epetedo, Lafiaji/Ebute, and Sandgrouse area and may not generalise well to other areas of Nigeria or even other countries. Practical Implication: Findings from this study are useful in yielding information and insight on land use and changes in rental rates in urban areas for urban planners, policymakers, property owners, and residents Social Implication: This study highlights the importance of proper urban planning and the appropriate policies required to manage land-use changes. Originality/Value: This study revealed the importance of accounting for dynamic characteristics and non-land variables in relation to land-use change and rental values.