on Commercial Property Rental Values
in South-East Nigeria
PEER REVIEWED PAPER
By Innocent Franklin Makata, Ifeanyi Fidelis Emoh, PhD and Chinelo Priscilla Igwe, PhD
Department of Estate Management
Nnamdi Azikiwe University
Awka, Nigeria
Abstract
This study compares how urban infrastructure affects commercial property rental values in major cities in South-East Nigeria, with a focus on Onitsha and Aba. It examines how the availability, condition, and efficiency of infrastructure have influenced rental value trends between 2015 and 2025. Using descriptive and comparative methods supported by field survey data and trend graphs, the study shows that key infrastructural factors such as road networks, water supply, electricity, drainage, waste management, and internet services play a major role in shaping commercial rental performance. The findings reveal that rental values in Onitsha increased more sharply, rising from about ₦150,000 in 2015 to approximately ₦950,000 in 2025. In contrast, Aba recorded a steadier growth, with rental values moving from around ₦120,000 to about ₦700,000 over the same period. These differences point to variations in infrastructure quality and levels of investment in the two cities. The study also shows that locations with reliable and well-maintained infrastructure tend to attract higher rents, stronger business activity, and greater investor confidence, while areas with poor or deteriorating infrastructure experience weaker market performance. The study concludes that sustained investment in infrastructure, regular maintenance, and the inclusion of digital facilities are essential for the long-term growth and stability of commercial real estate markets in South-East Nigeria. It also highlights the need for better coordination in urban infrastructure planning and real estate policies to promote balanced and inclusive regional development.
Keywords: Urban Infrastructure, Commercial Property, Rental Values, Trend Analysis.
1.0 INTRODUCTION
Urban infrastructure plays a role in how cities grow and function, and it strongly influences property values and overall economic activity. Facilities such as roads, water supply, electricity, drainage systems, and waste management shape how attractive commercial properties are and how well they perform in the rental market. In developing economies like Nigeria, this relationship is especially clear because of rapid urban growth and uneven distribution of infrastructure across cities.
South-East Nigeria, with its high level of commercial activities and growing population, provides a suitable setting for examining how differences in infrastructure affect commercial rental values. Although there have been investments in urban development across the region, many cities still struggle with inadequate infrastructure, which affects the efficiency of property markets and discourages long-term investment. This study therefore compares urban infrastructural conditions in selected cities in South-East Nigeria and examines how these conditions influence commercial property rental values. The analysis helps to improve understanding of real estate market behavior and supports informed urban planning and policy decisions.
1.1 Background to the Study
Infrastructure is widely recognized as the foundation of urban economic growth and the performance of property markets. The provision of adequate infrastructure goes beyond physical development, as it directly affects land and property values by improving access, lowering business operating costs, and creating a better environment for commercial activities. In Nigeria, infrastructure development has been uneven over time, resulting from shifts between government-led and market-driven policies, which have left many cities with varying levels of service delivery.
In South-East Nigeria, cities such as Onitsha, Aba, and Enugu have received different levels of infrastructural investment, leading to noticeable differences in commercial rental values. Areas with good road networks, reliable electricity, and effective drainage systems often attract higher rents because they support business activities and reduce operational challenges. On the other hand, poor infrastructure and lack of maintenance have contributed to declining urban areas in some locations, reducing investor confidence and limiting property returns.
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How to cite this paper: Makata, I F., Emoh, I. F., Igwe, C. P. (2026). A Comparative Assessment of Urban Infrastructural Variables on Commercial Property Rental Values in South-East Nigeria; PM World Journal, Vol. XV, Issue I, January. Available online at https://pmworldjournal.com/wp-content/uploads/2026/01/pmwj160-Jan2026-Makata-et-al-Comparative-Assessment-of-Urban-Infrastructural-Variables.pdf
About the Authors
Innocent Franklin Makata
Delta State, Nigeria
Mr. Innocent Franklin Makata holds BSc and MSc in Estate Management from Nnamdi Azikiwe University, Awka. He is currently a lecturer at Delta State University of Science and Technology, Ozoro, Delta State, Nigeria. He has been published in some reputable journals. Mr. Makata can be contacted at makataif@dsust.edu.ng.
Fidelis Ifeanyi Emoh, PhD
Awka, Nigeria
Prof. Fidelis Ifeanyi Emoh, B.Sc., M.Sc., Ph.D. (Estate Management), PGD, MBA (Banking & Finance), FNIVS, MNIM, FIMC, CMC, is a Professor of Real Estate and Valuation in the Department of Estate Management at Nnamdi Azikiwe University, Awka, Nigeria.
Chinelo Priscilla Igwe, PhD
Awka, Nigeria
Prof. Chinelo Priscilla Igwe, B.Sc., M.Sc., Ph.D. (Estate Management), is a Professor of Real Estate and Valuation in the Department of Estate Management at Nnamdi Azikiwe University, Awka, Nigeria. She is currently the Head of the Department of Estate Management.
