The Effect Of Slum On Property Values (a Case Study Aguowa In Enugu, Enugu State)

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The Effect Of Slum On Property Values (a Case Study Aguowa In Enugu, Enugu State)


The aim of this dissertation is to evaluate the effects of slum on property values at Aguowa via Trans-Ekulu and confirm that slum was responsible for the low property value in the area. The study showed that the slum occurrence was as a result of rural migration to urban areas and lack of original planning in the area. This work is organized in five chapters. Chapter one deals with the introduction, statement of the problem, purpose of study, limitation and delimitation, background and need for the study, significant of the study and the overview of the study. Chapter two deals on the literature review of related study like concept of residential slum, definition of slum, type of slum, roles of slum, theoretical aspect of slum, history of recognition of slum, concept of real estate development, type of property and classification, rational for real property development and property values.

Chapter three talked about the research method, the re-statement of the problem,  sources  of  date, of  the  problem, sources  of  date,  population  and

sample size, data collection, date collection procedure method of data analysis and finally data analysis procedure.

Chapter four deals on the data presentation and analysis while chapter five deals with findings, recommendation and conclusion.



1.0              Introduction

1.1       Background of study

1.2              Statement of problem

1.3              Objective of the study

1.4              Research question

1.5              Theatrical foundation of the study

1.6              Significance of study

1.7              Delimitation of study

1.8              Limitation

1.9              Overview of the study


2.1        Definition of Slum

2.2        Concept of Residential Slum

2.3        Attributes of slum

2.3.1        Physical Attribute

2.3.2        Social Attribute

2.3.3        Economic Attribute

2.4        Causes of blight and factors leading to slum formation

2.5        Types of slum

2.6        Role of slum

2.7        Slum as a critical environmental problem

2.8        Theoretical aspect of slum

2.8.1        History of recognition of slum

2.8.2        Concept of real/property development

2.9        Types of property and classification

2.9.1        Property values


3.0       Introduction

3.1              Re-statement of the problem

3.2              Source of data

3.3              Description of study area

3.4              Population and sample size

3.5              Data collection instrument

3.6              Data collection procedure

3.7              Method of data analysis and presentation


4.0       Presentation and analysis of data

4.1              Presentation of base data

4.2              Presentation of data on level of deterioration within the study area

4.3              Presentation of data on the impact of slum on property values

4.4              Presentation of data on the effect of slum on property values

4.5              Presentation of data on property



At the commencement of coal mining in Enugu in 1915, Aguowa received many immigrants from where the commute to the city to partake in coal boom as at that time. By and large, the rural settlement experienced rapid population growth and since it was at the outskirt of Enugu central, it was not subjected to building regulations and codes, hence houses constructed of handy materials sprang up all over the settlement. Thus the area was crowded with poor housing structures most disorderly located. The settlement has grown and developed in an unplanned manner resulting in the decline of property values and social status of the estate environment. While the dwellers show no indifference to the poor conditions of the urban environment, the city government agencies responsible for planning and managing the urban environment and regulating urban life displayed a mark of ineffectiveness in the discharge of their duties.

This condition consequently brought a spontaneous development of sub-standard dwelling, deriod of essential amenities, estate roads, drainage, ventilation, recreational facilities, refuse disposal facilities etc. lack of all these eventually both the available infrastructures and building consign obsolescence and subsequently the slum. Due to this burning issue of slum, the researcher is set to evaluate the effect on property values at Aguowa, its states of evaluation in the study area taking note of both its immediate and remote causes. In other to established and the effect of this slum on property values the researches reduces the population of study which is it properties in the two 92) residential neighbourhoods of Aguowa (namely Trans – Ekulu and Federal Housing Estate).

Stratified random sampling method was used to collect data for the study.


Aguowa area is the native home land of the Nike people. The land is the freehold property of the people, as a result of this, some families were able to lease or sell land to non indigenous when the expansion of the Enugu urban centre aught up with the area sometime in 1955. Some of the none indigenes erected houses while others employed the services of licensed surveyors to demarcate the portion of their land in anticipation of erecting structures which would comply with the building bye laws as approve by the municipal council.

Unfortunately, the native authority could not control development in this area, until Enugu was declared as planning area, on 14th September, 1958. Even with the declaration, development continued haphazardly in total disregard of town planning regulation. Uncontrolled development within the area and increases urban population in Enugu led to the blighting of the neighbourhood.

The environmental conditions are considered very poor and dangerous to health. This is partly due to the public attitude towards waste disposal and to the inefficiency and ineffectiveness.


“Aguowe Jungle” is characterized by slum condition like blighted structure, over crowding, high occupancy ratio mostly by low income group, under supply of public amenities, bade roads etc. This observation made the researcher interested in trying to examine the effect of this condition (slum) on property values and hence the research work.

1.3              OBJECTIVE OF THE STUDY     

The objective of this study is as follows: –

a.                   To identify the causes of slum in the study area as well as the indicator of slum environment.

b.                  To find out whether the property value including rental and captial values of landed properties are low or high in Aguowa as a result of slum condition.

c.                   To establish whether the slum has a negative or positive effect on property value in the study area.

d.                  To establish whether slum environment makes investment in real estate and property market transactions, a viable venture.

e.                   To recommend the best strategy towards eradicating the slum of Aguowa area and hence create a suitable environment that will enhance the property value in the area.

1.4              RESEARCH QUESTION

To investigate the research problem earlier stated and to rightly address the focus of this study more objectively, certain questions have been raised. It is believed that obtaining the right answers to these questions have been raised. It is believed that obtaining the right ensures to these questions will led to the achievement of the objectives of the study. The questions are as follows:

1)         Is there any significant manifestation of slum in the study area when compared with other surrounding layouts.

2).        Does slum have any significant impact (positive or negative) on property values in Aguowa.

3).        If positive urban planning strategy is applied to the slum area, will thee be any significant effect on real estate values within the slum area


This work is based on the theory of the highest and best use of land. This is meant to mean the optimum use of land and land resources (Baco 1932). This is the use of land in such a manners a manner as to provide and optimum return to their owners, or to society. Aguowe area  is not being put to its highest and best use and that calls for he significance of this study.


The study identifies the types of slum in the study area and elsewhere and has clearly portaged the need for an urban planning policy and also a determined resolve to clear a slum environment so as to enjoy the benefits of real estate environment through the enhanced property values.

The study will also be of very relevance to the practicing estate surveyors and the banking institutions who might need real estate as collateral for providing credit facilities for the conditions of the properties and neghbourhoods when carrying out mortgage and insurance valuations as well as other valuation purposes. Of course a property located in a slum environment will not make for a good collaterals for a bank loan because of low returns. The study will also be benefited to the residents of Aguowa because  to the recommendations are implemented, they will enjoy a clean and healthy environment.

1.7       SCOPE OF STUDY     

This study is restricted to the development of slum in Aguowe of Enugu Central local government area. The investigation will consider the environmental, socio economic demographic, transportation, infrastructureal and housing amenities conditions relevant to enhance estate setting as well as property values.


the study starts with an introductory chapter on the research problem and other related issues. Chapter two dwells on literature review, throwing more lights on slum, concept of slum, types of slum, attributes of slum, causes of blight and factors leading to slum formation, types of slum, role of slum, history of slum, etc.

Chapter three talked about the research methodology, research method and design, source of data, data collection and instrument for  data analysis.

Chapter four deals with data presentation and analysis while chapter five deals with the findings, recommendation and conclusions.

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