Residential Property Value and Security Features in Gated Communities

Abstract

In recent times, the fear of crime is growing globally including Nigeria. The more the fear grows the greater the reaction to address it. People are becoming more security conscious in their choice of residence. Some are turning to high walls and fences around residential areas. This has brought about the concept of gated community which is becoming the order of the day. If security is one cardinal reason for the gate, no single study has been able to look at the quantum of value contribution of this variable in gated communities (GCs). The study therefore examined the value contribution of security features on residential properties using the willingness to pay (WTP) and willingness to accept payment (WTA)
models. The study adopted a survey method using snowball and captive sampling method to collect data that were analyzed with descriptive and inferential tools. A total of 124 questionnaires were administered on the resident households. Major finding showed that high security arrangements/features are ranked first & second as the determinant of the rental value paid in both gated communities observed. The conclusion is that security determines the willingness of consumers to pay and the decision of the investors to invest in gated community. The study therefore recommends that adequate security arrangements should be made available in gated community in order to ensure virile residential estate property value.