EFFECT OF PROPERTY RATING ON RESIDENTIAL PROPERTY INVESTMENT IN UYO LOCAL GOVERNMENT AREA

ABSTRACT This study evaluates the effect of property rating on residential property investment in Uyo Local Government Area, with particular attention to investment decisions and rental values from 2015 to 2024. It also examines the challenges associated with the administration of property rating within the study area. A survey research design was adopted. Primary data were collected using structured questionnaires administered to 88 respondents, comprising staff of the Akwa Ibom State Internal Revenue Service (61) and representatives of estate surveying and valuation firms (27) in Uyo Local Government Area. A total of 83 questionnaires (94.3%) were successfully retrieved and used for the analysis. Secondary data were gathered from existing literature, government reports, academic journals, and relevant online publications. The study found that property rating has both positive and negative effects on investment decisions. Positively, it contributes to improved infrastructure, better planning, and revenue generation, while negatively, it reduces profitability, discourages new development, and increases the risk of tax evasion. Analysis of rental values between 2015 and 2024 further revealed significant increases across major locations in Uyo, with the highest growth recorded in Ewet Housing Estate, followed by Oron Road and Ikot Ekpene Road. Simple linear regression was adopted for the analysis, yielding a correlation coefficient R of 0.656, and a coefficient of determination (R²) of 0.431. These results indicate that 43.1% of the variation in residential property investment can be explained by the current property rating system. The model produced an F statistic of 18.916 (p < 0.001), leading to the rejection of the null hypothesis (Ho) and acceptance of the alternative (H₁). It thus provides 95% confidence that property rating has a significant effect on residential real estate investment in Uyo. Challenges identified include lack of awareness, poor communication of assessment procedures, delayed issuance of demand notices, and inefficiencies in collection processes. The findings suggest that enhancing public education, improving transparency, streamlining administrative processes, and adopting efficient valuation methods would increase the effectiveness of property rating systems.