Empirical Study of the Impact of Infrastructure Quality on Real Estate Values in Secondary Cities of North Central Nigeria

The relationship between infrastructure quality and real estate values is well established theoretically, but its empirical quantification in secondary cities of North Central Nigeria, where infrastructure deficits are particularly severe, provides critical evidence for urban investment planning. This study empirically investigated the impact of infrastructure quality on residential real estate values in three secondary cities: Lafia (Nasarawa State), Lokoja (Kogi State), and Minna (Niger State). A hedonic price modelling approach was adopted, using data on 840 residential properties collected through structured surveys of estate agents, property owners, and residents. Infrastructure quality indicators (road condition, water supply reliability, electricity supply hours per day, drainage adequacy, and solid waste collection frequency) were measured at the neighbourhood level using standardised scoring systems. Property characteristics (size, age, construction quality, and location) were also recorded. Hedonic regression was conducted using ordinary least squares with robust standard errors. Results showed that water supply reliability had the largest positive hedonic price premium, explaining 18.4% of property value variation (coefficient = 0.184, p < 0.001). Road quality ranked second in importance (coefficient = 0.143, p < 0.01). Daily electricity supply hours contributed significantly (coefficient = 0.072 per hour, p < 0.05). Combined infrastructure quality improvement from poor to good levels was associated with a 37.2% increase in residential property values. The study provides the first quantitative infrastructure-property value analysis for North Central secondary cities, informing urban infrastructure investment prioritisation. Keywords: real estate values, infrastructure quality, hedonic pricing, North Central Nigeria, secondary cities