An Investigation on the Impact of Service Apartments on Residential Property Market in Awka, Anambra State, Nigeria

Abstract

The rapid growth of service apartments in Nigerian cities has redefined residential property markets, creating both opportunities and challenges. This study was carried out to investigate the impact of service apartments on the residential property market in Awka, Anambra State with focus on rental prices and housing availability for long-term residents. Primary data were collected through questionnaire and observations. Secondary data were obtained through text books, scholarly journals, government publications and internet materials pertaining to the real estate industry in Awka. The data collected were analyzed using both descriptive and inferential statistical tools It adopted a survey research design. Data was gotten from 150 distributed questionnaires, 132 were completed and returned which yielded an 88% response rate. Respondents included tenants (72%), property owners (18.9%), and agents (9.1%). Data analysis employed descriptive statistics (means, percentages) and chi-square tests at a 0.05 significance level. Findings revealed that respondents widely perceived service apartments as escalating rental prices, increasing competition in the housing market, and contributed to the scarcity of affordable housing for average-income earners. While the study showed an insignificant direct displacement of long-term tenants, the conversion of properties into short-let units indirectly affected housing availability. Hypothesis testing confirmed a statistically significant association between service apartments and respondents' perceptions of rental prices and housing availability in the study area. The study concludes that service apartments are multifaceted. While it simultaneously drives urban development and investment, it exacerbates affordability and accessibility issues. It recommends improved regulatory frameworks, increased monitoring, and policies that balance economic gains with equitable housing provision for long-term residents.