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LAND USE AND BUSINESS LOCATION
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
The rapid pace of urbanization in some developing countries (like Nigeria) has brought about tremendous changes in the use of land (Ifeoluwa, 2011; Olayinka, 2012) of which the metropolitan city of Abeokuta is not left out. The recent noticeable growth and development in population and the utilization of special extent (Shankar and Vidhya, 2013) has made indelible contributory effect on land use conversion, property values (Adebayo, 2009) and environmental qualities (Dami et al, 2011). However, studies have shown that, the increased rate of urbanization in the developing countries is also strengthened by the activities of the multinationals that tend to concentrate their investments and manufacturing projects within urban areas (Olayinka, 2012).
Urbanization itself especially that which is characterized with uncontrollable population growth produces both pretty and ugly faces (Egunjobi, 2004). The pretty face which it provides includes concentration and complementarily of various economic activities enjoyable by the urban populace coupled with high degree of opportunities such as employment, high demand for goods and services, investment potentials and proximity to the various means of satisfying human wants all of which had made the city a center of attraction and served as pulling force in attracting increasing population from within and outside the urban area. However the ugly face which consist of overpopulation, pressure on exiting infrastructural facilities, high crime rate, emergence of slum area, environmental pollution as well as deteriorating of the natural ecosystem (Oyinloye and Kufoniyi, 2013).
Change in use has been described as the use of land or buildings thereon for a purpose which is different from that for which the land or building was originally zoned and intended for. Equally, change of use is synonymous with increase in the intensity of use, triggered by an increase in demand (Olayinka, 2012). Thus, in any case, change in use arises as a result of man’s attempt to exploit land resources to its highest and best use. The major contributing factors which promote the needs for enhanced use of properties includes; interplay between the force of demand and supply, planning regulations, use complementary, infrastructural facilities, accessibility, population size, rent, circulation network where the impacts of the resultants increase in land uses have been attributed to traffic congestion, housing shortage, pressure on existing infrastructural facilities, increase in rent, overpopulation, high crime rate, poor road network etc. (Yuri, 2005; Ayotaminu et al, 2010; Balogun et al, 2011; Gbadamosi and Ibrahim, 2013)
Hence, the existence of emerging land use conversion which is persistent in the urban centers has made it imperative for government regulation policy of change in land use a high value index (Yuri, 2005). The essence of such check is to control the adverse effect sequel to the land use conversion and intensity of use. But such check had to be balanced so as not to discourage urban physical and economic development. Hence, Kin (2010) suggested that, government officers at all levels are more fearful of engaging in land use planning than in the past. Since all human activities require land, the fear is therefore concerned with the carrying capacity of the government planning policies and programmes to match man’s insatiable desires and varying decisions with available land resources (which is physically fixed in nature) while ensuring quality of their communities and the pace of socio-economic growth and development in the nation at large.
The goal of land use change analysis according to Kates, Turner and Clark, (1990), revolves around two central and interrelated issues, the drivers and the impacts of the land use changes. The drivers of the change are the causes and processes that bring about the change while the impacts are the consequences of the change. In general, the study of the impact of land use change has received more attention and publicity than the drivers simply because it is the impacts that are readily felt. In most cases, the drivers are hardly appreciated (Dani et al, 2011). However, land use change over time is an inevitable phenomenon occurring globally. The phenomenon could be revealed either in a small or large scale but the most interesting and fundamental observation is that change occurs over time in a particular place (De-Sherbinin, 2002).
However, it is a prima facie fact that, land forms the bedrock for all human activities and development which is always dangling within the varying man’s needs and decisions. With the needs to meet up with the current economic realities, change in the use of land became inevitable in an attempt to achieving socioeconomic satisfaction and in order to exploit prevailing opportunities availed by land use dynamism. Nevertheless, it is of great importance to take note of the adverse effects poised by land use dynamism not only on the subject property itself, but also on both the adjoining land uses/structure (Ayotamuno et al, 2010) and environmental qualities (Kevin, 2013) at large
Therefore, changes in land uses that are attributable to human population explosion emanates into uncontrollable intense use of land which has in turn brought about imbalance in socio-economic human activities and poised a big threat to natural ecosystem (Eludoyin et al, 2011). The major challenges faced by the major cities experiencing high intensity of change in land use structures as highlighted by Oyinloye and Kufoniyi (2013), include; uncoordinated land development, unparalleled city growth, conflicting landuses, high densities in certain parts of the urban area and the absence of adequate road network to enhance the ease of movement of people within the city. In most cases, this situation has led to a degenerated standard of living in the urban centers to the extent of incapacitating the planning authorities in dealing with the situation and controlling urban growth (Oyinloye and Kufoniyi, 2013). Thus, in order to enhance environmental qualities and social economic well-being of the urban dwelling places, a proper check should be put in place (Adeboyejo and Abolade, 2006). In absence of which the beauty faces of the cities such as the natural landscape, road network system and most importantly, housing stock will be exposed to a great risk. (Eludoyin et al, 2011).
Kin (2010), had argued that, land use regulation promote economic well-being of a nation. But alternatively, it raise barrier to development and thus, slow the pace of economic growth or progress (Krabben and Bokena, 1994). However, many authors has canvassed that, the prevalent government intervention in land use was typically based on the notion that, proper land use controls actually enhance public interest, by eliminating negative externalities among conflicting land uses, protecting natural environments and consequently promoting the location-specific amenities, providing adequate amount of public goods and services more efficiently, reducing uncertainty and transaction costs involved in the land development processes.
On the other side of the argument, recent studies have also shown that, there are undesirable consequences of strict land use regulations, such as the enhancement of monopoly power of the land owners, the rapid increases in land or house price due to limited supply and consequent affordable housing problems. Furthermore, in recent years, it has been suggested that strict regulations on land use might hinder economic growth by constraining land supply for urban uses excessively, increasing the costs of housing significantly, and limiting not only land but also labor supply for business activities. In other words, land use regulations may have negative effects on the performance of economies that offset the benefits stemming from the correction of the market failure
The illustrations above represents the outcomes of various researches that have been carried out on determinants of change in use and it implications to property values but none was discovered for a place like Ibara/Okelewo Area, Abeokuta, Ogun State, Nigeria. This study however reveals various salient factors responsible for change in use, the direction of change and its alarming implications on rental values in the study area for which its findings will form a structural framework and a reliable source of information that can guide the concerned stakeholders (property investors) and urban planners in decision-making.
1.2 STATEMENT OF THE PROBLEM
it is no longer news that, the intensity of land use activities has became increasingly compounded with uncontrollable growth (Eludoyin et al, 2011) most especially cities undergoing persistent population growth (Shankar and Vidhya, 2013). This has led to the wave of land use conversion of structures from their original plans which have become evident in most cities to the extent that a piece of land or buildings serve many different uses from that for which they were designed or different purposes at the same time. This situations arises because, cities in most developing countries like Nigeria have been undergoing unprecedented changes both in population and spatial extent (Adeboyejo and Abolade, 2006).
Land use change occurs when the use to which a piece of land is currently is different from that usage it was committed to in the past (Oyinloye and Kufoniyi, 2013). That is, change of use, is the use of land or buildings thereon for a purpose which is different from that for which the land or building was originally zoned and intended for. It has been globally recognized that, persistent increase in population tends to be the most significant explanatory factor among others resulting into urbanization characterized by with higher number of people concentrating in a particular place usually urban centers in search of greener pastures. This assertion is supported by USGS fact sheet 188-99 in 1999 which identified that, approximately 15% of the world populations were living in urban areas at about 100 years ago, whereas today the percentage of the world population living in the urban centers is now nearly 50% (Eludoyin et al, 2011).
1.3 OBJECTIVES OF THE STUDY
The objectives are to;
i). identify and examine the major factors responsible for change in use in the study area;
ii) examine the pattern of change in use of properties in the study area;
iii) examine the impact of change in use on property rental value in the study area;
1.4. RESEARCH QUESTIONS
i). What are the major factors responsible for change in use in the study area;
ii) What is the pattern of change in use of properties in the study area;
iii) What is the impact of change in use on property rental value in the study area;
1.5 RESEARCH HYPOTHESES
H0: There is no significant relationship between land use and business location
H1: H0: There is a significant relationship between land use and business location
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