Impact of Sustainable Property Development on Residential Property Value

Abstract

Traditional patterns of urban growth have to be rethought in light of growing awareness of
social injustice, environmental degradation, and climate change. The study aim to examine the
impact of sustainable property development on residential property values in Ibadan, Oyo
State; examine the various sustainable property developments and the trend of property value
between 2015 – 2025. Data were collected through closed-ended structured questionnaires
administered to 113 estate surveying and valuation firms, with the retrieval of 75 valid
responses and also, 68 questionnaires were administered to real estate development firms, with
the retrieval of 42 responses. A simple random sampling technique was used, and the analysis
employed frequency tables, trend analysis and multiple regression. The multiple regression
results show modest correlations: sustainable features explain ~28% – 46% of rental/property
value variation across flat types, with adjusted R² considerably lower after accounting for
predictors. Only a few features were significant such as sustainable landscaping (negative) and
resilient design (positive) for two-bedroom flats, and waste reduction (negative), green
landscaping (positive), certifications, energy systems (positive), and some negatives like smart
grid integration in three-bedroom flats. Financial incentives should be introduced to mitigate
the high initial costs often associated with sustainable development. In conclusion, the findings
highlight the urgent need for an enthusiastic policy structure, financial incentives, capacity
building, and public awareness to mainstream sustainable practices in property development.