Empirical Investigation of Environmental Attributes and Their Price Effects on Residential Property Markets in South West Nigeria

This study empirically investigates how environmental attributes including proximity to urban green spaces, noise exposure, flood risk, and air pollution levels influence residential property prices in selected neighbourhoods of South West Nigeria, contributing to the limited empirical literature on environmental economics applied to Nigerian property markets. Environmental amenities and disamenities are increasingly important housing market considerations as urban quality of life pressures intensify and climate-related flood risks expand in Nigerian cities, yet their monetary valuation in the Nigerian context remains largely unstudied. Property transaction data are assembled for 560 residential properties across twelve neighbourhoods in Ibadan, Lagos, and Abeokuta, supplemented by environmental quality measurements including green space proximity mapping, flood risk classification from state environmental agency data, road noise exposure estimates from traffic counts, and air pollution indicators. Multiple regression hedonic models with environmental attribute variables estimate price premiums and discounts associated with each environmental factor. Spatial regression models account for price spillovers. Results confirm statistically significant price premiums for proximity to public parks and well-maintained green open spaces, averaging 11 percent within 300 metres in Ibadan. Flood risk zones show significant price discounts ranging from 16 to 28 percent depending on flood frequency, consistent with findings from other emerging market studies. Noise exposure shows modest but statistically significant negative price effects. Air pollution indicators are not statistically significant in this dataset, possibly reflecting measurement precision limitations. Recommendations include incorporating environmental quality improvement into urban area value enhancement strategies. Keywords: environmental attributes, property prices, hedonic pricing, green space, South West Nigeria.