THE EFFECT OF INFORMAL SETTLEMENTS ON ADJACENT PROPERTY VALUES: A CASE STUDY OF SANGO-OTA, OGUN STATE

Abstract

This study examines the influence of informal settlements on adjacent property values in Sango-Ota, Ogun State, Nigeria—a rapidly urbanizing area characterized by a proliferation of unplanned communities. Informal settlements, often lacking basic infrastructure and formal planning, can significantly affect the property market dynamics of surrounding areas. Utilizing a mixed-methods approach, this research combines spatial analysis of property value trends with qualitative assessments through surveys and interviews to understand the extent and nature of these impacts. The findings reveal a marked depreciation in property values in proximity to informal settlements, attributed to factors such as environmental degradation, inadequate infrastructure, and perceived insecurity. These results align with global studies indicating that informal settlements can lead to reduced property desirability and value (Akinmoladun et al., 2019; UN-Habitat, 2020). The study underscores the need for inclusive urban planning strategies that integrate informal settlements into formal frameworks to mitigate negative impacts on property markets and promote sustainable urban development.