Location of economic properties has been a difficult concept to understand.  Although the primary objective of commercial properties is the derivation of financial gains, while that of residential properties is for habitation, shelter and comfort, the demand for land is a reflection of the profitability or utility derivable from its use. The greater the benefit to be obtained from a particular use, the higher the rent that the user will be willing to pay for it.

There appear to be wide ranging differences in the levels of rent passing on residential and commercial properties in Enugu and Nigeria generally.

This research is seeking among other things to find out the causes of rental variation in commercial and residential properties in Nigeria, Ogui New Layout and G.R.A as a case study.

Shelter is a basic necessity in life. An individual can satisfy this need by 

either occupying his own (owner’s occupier) property or renting another person’s property. In our traditional society, the need for shelter is mainly met through the first alternative that is owner occupation. With the emergency of urban centers’, the situation has changed. Many people are no longer about to own property because of the difficulty in the acquisition of land and the high cost of building construction. Therefore, they are left with the alternative of renting other people’s properties in order to satisfy their need for shelter. Consequently two classes of urban resident have emerged, the landlord and the tenant under this arrangement the tenant pays to the landlord a certain amount of money in consideration for his use of the landlord’s house. This amount is popularly known as rent.

During the civil war the Nigeria that is 1966 to 1970 many landed properties in the urban areas of the former Eastern Region of Nigeria, including Enugu, were destroyed. Consequently, there was a sharp decline in the supply of landed properties after the war. Furthermore, the post – civil war period witnessed an unprecedented number of the rural population trooping into the urban centres due to the conspicuous prosperity brought about in the urban area by the oil boom. This resulted to high demand for the existing limited supply of landed properties. Consequent upon these, rent for landed properties increased considerably.

This trend has continued with the effect that “the average worker is paying

30% to 40% of his salary as rent” (Oshadiya, 1985). Thus the increase in rents on the properties has led to the variation of rent on properties.

In urban area due to location advantage (for example prime location) which some properties offer above others for commercial and residential uses, rent tend to very on account of the type of use which a property can offer.

The main aim of this research is to examine the reasons for rental variation 

in commercial and residential properties with a view to provide tool to be used in catching issues related to rent on these properties in Enugu and Nigeria generally.

To achieve the standard goal, the following objectives are to be pursued;

i) To identify the level of rents for commercial and residential properties in the study area. 

ii) To ascertain and examine the factors influencing the rents being commanded by these properties. 

iii) To determine or examine whether the income of prospective buyers/tenants affect their decision to acquire properties. 

iv) To ascertain if there is disparity in rental values for residential and commercial properties in the study area. 

v) To find out the rate of demand between commercial and residential properties?