Determining the Factor Affecting Property Value Increments: The Cause Study of Dire-Dawa City, Ethiopia

Yohans Teshome Negashi

doi:doi:10.11648/j.jwer.20221101.11

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Determining the Factor Affecting Property Value Increments: The Cause Study of Dire-Dawa City, Ethiopia

Yohans Teshome Negashi

Published in Journal of World Economic Research (Volume 11, Issue 1)

Received: 30 November 2021 Accepted: 5 January 2022 Published: 12 January 2022

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Abstract

In the next 25 years, cities in the developing world will grow by almost 2 billion people, accounting for some 90 percent of world population growth. This growth will create a huge demand for infrastructure. Infrastructure investment will be required to make cities efficient locations for economic production, to provide basic services for a larger population, and to upgrade public services in line with household incomes. At the same time, population and economic growth will drive increases in urban land and property values. The ability of cities to finance the needed infrastructure will depend in large part on their ability to capture a portion of these gains and to channel them into infrastructure finance. This shows the various ways in which land values can be used to help pay for investment in infrastructure, in addition to their role as part of the property tax base as well as Land has a long history as an instrument of urban infrastructure finance. The main aim of this research article focuses on the possibility to implement land value capture to finance to expand infrastructure in the city. This research article tries to investigate how the factors affecting property/ land value increment and land value capturing mechanisms are implemented when a government provides different infrastructures expansion to community and the property value increment around that infrastructure corridor in Dire Dawa city. However, further investigation should be started nation-wide to discover the problems throughout the country. The study applied both qualitative and quantitative approaches where primary and secondary data sources were used. The data analyzed using Microsoft excels, Strata software and regression analysis (SPSS). The regression analysis shows that, the identified independent variables that affect the property value at 89.5%. The finding of this study showed that there was a higher need for sustainable fund sources to respond to an increase in road infrastructure expansion demand in the future. However, there is a big gap between the actual practice of land value capturing, valuation methods, practice, the laws and proclamation. Lack of application of consistent land value capturing mechanisms and procedures created situations of a shortage finance to provide infrastructures service to the whole community in the city and to obtain the sustainable funding sources. Therefore, applying land value capturing is legitimate to solve the shortage of finance for future expansion of different public infrastructure expansion in Dire Dawa City.

Published in	Journal of World Economic Research (Volume 11, Issue 1)
DOI	10.11648/j.jwer.20221101.11
Page(s)	1-10
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Property Value, Land Value, Land Value Capture, Property/Land Value Increment

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APA Style

Yohans Teshome Negashi. (2022). Determining the Factor Affecting Property Value Increments: The Cause Study of Dire-Dawa City, Ethiopia. Journal of World Economic Research, 11(1), 1-10. https://doi.org/10.11648/j.jwer.20221101.11

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ACS Style

Yohans Teshome Negashi. Determining the Factor Affecting Property Value Increments: The Cause Study of Dire-Dawa City, Ethiopia. J. World Econ. Res. 2022, 11(1), 1-10. doi: 10.11648/j.jwer.20221101.11

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AMA Style

Yohans Teshome Negashi. Determining the Factor Affecting Property Value Increments: The Cause Study of Dire-Dawa City, Ethiopia. J World Econ Res. 2022;11(1):1-10. doi: 10.11648/j.jwer.20221101.11

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@article{10.11648/j.jwer.20221101.11,
  author = {Yohans Teshome Negashi},
  title = {Determining the Factor Affecting Property Value Increments: The Cause Study of Dire-Dawa City, Ethiopia},
  journal = {Journal of World Economic Research},
  volume = {11},
  number = {1},
  pages = {1-10},
  doi = {10.11648/j.jwer.20221101.11},
  url = {https://doi.org/10.11648/j.jwer.20221101.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20221101.11},
  abstract = {In the next 25 years, cities in the developing world will grow by almost 2 billion people, accounting for some 90 percent of world population growth. This growth will create a huge demand for infrastructure. Infrastructure investment will be required to make cities efficient locations for economic production, to provide basic services for a larger population, and to upgrade public services in line with household incomes. At the same time, population and economic growth will drive increases in urban land and property values. The ability of cities to finance the needed infrastructure will depend in large part on their ability to capture a portion of these gains and to channel them into infrastructure finance. This shows the various ways in which land values can be used to help pay for investment in infrastructure, in addition to their role as part of the property tax base as well as Land has a long history as an instrument of urban infrastructure finance. The main aim of this research article focuses on the possibility to implement land value capture to finance to expand infrastructure in the city. This research article tries to investigate how the factors affecting property/ land value increment and land value capturing mechanisms are implemented when a government provides different infrastructures expansion to community and the property value increment around that infrastructure corridor in Dire Dawa city. However, further investigation should be started nation-wide to discover the problems throughout the country. The study applied both qualitative and quantitative approaches where primary and secondary data sources were used. The data analyzed using Microsoft excels, Strata software and regression analysis (SPSS). The regression analysis shows that, the identified independent variables that affect the property value at 89.5%. The finding of this study showed that there was a higher need for sustainable fund sources to respond to an increase in road infrastructure expansion demand in the future. However, there is a big gap between the actual practice of land value capturing, valuation methods, practice, the laws and proclamation. Lack of application of consistent land value capturing mechanisms and procedures created situations of a shortage finance to provide infrastructures service to the whole community in the city and to obtain the sustainable funding sources. Therefore, applying land value capturing is legitimate to solve the shortage of finance for future expansion of different public infrastructure expansion in Dire Dawa City.},
 year = {2022}
}

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TY - JOUR
T1 - Determining the Factor Affecting Property Value Increments: The Cause Study of Dire-Dawa City, Ethiopia
AU - Yohans Teshome Negashi
Y1 - 2022/01/12
PY - 2022
N1 - https://doi.org/10.11648/j.jwer.20221101.11
DO - 10.11648/j.jwer.20221101.11
T2 - Journal of World Economic Research
JF - Journal of World Economic Research
JO - Journal of World Economic Research
SP - 1
EP - 10
PB - Science Publishing Group
SN - 2328-7748
UR - https://doi.org/10.11648/j.jwer.20221101.11
AB - In the next 25 years, cities in the developing world will grow by almost 2 billion people, accounting for some 90 percent of world population growth. This growth will create a huge demand for infrastructure. Infrastructure investment will be required to make cities efficient locations for economic production, to provide basic services for a larger population, and to upgrade public services in line with household incomes. At the same time, population and economic growth will drive increases in urban land and property values. The ability of cities to finance the needed infrastructure will depend in large part on their ability to capture a portion of these gains and to channel them into infrastructure finance. This shows the various ways in which land values can be used to help pay for investment in infrastructure, in addition to their role as part of the property tax base as well as Land has a long history as an instrument of urban infrastructure finance. The main aim of this research article focuses on the possibility to implement land value capture to finance to expand infrastructure in the city. This research article tries to investigate how the factors affecting property/ land value increment and land value capturing mechanisms are implemented when a government provides different infrastructures expansion to community and the property value increment around that infrastructure corridor in Dire Dawa city. However, further investigation should be started nation-wide to discover the problems throughout the country. The study applied both qualitative and quantitative approaches where primary and secondary data sources were used. The data analyzed using Microsoft excels, Strata software and regression analysis (SPSS). The regression analysis shows that, the identified independent variables that affect the property value at 89.5%. The finding of this study showed that there was a higher need for sustainable fund sources to respond to an increase in road infrastructure expansion demand in the future. However, there is a big gap between the actual practice of land value capturing, valuation methods, practice, the laws and proclamation. Lack of application of consistent land value capturing mechanisms and procedures created situations of a shortage finance to provide infrastructures service to the whole community in the city and to obtain the sustainable funding sources. Therefore, applying land value capturing is legitimate to solve the shortage of finance for future expansion of different public infrastructure expansion in Dire Dawa City.
VL - 11
IS - 1
ER -

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Author Information

Yohans Teshome Negashi

Department of Land and Real Property Valuation, College of Business and Economics, Dire-Dawa University, Dire Dawa, Ethiopia

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Yohans Teshome Negashi. (2022). Determining the Factor Affecting Property Value Increments: The Cause Study of Dire-Dawa City, Ethiopia. Journal of World Economic Research, 11(1), 1-10. https://doi.org/10.11648/j.jwer.20221101.11

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ACS Style

Yohans Teshome Negashi. Determining the Factor Affecting Property Value Increments: The Cause Study of Dire-Dawa City, Ethiopia. J. World Econ. Res. 2022, 11(1), 1-10. doi: 10.11648/j.jwer.20221101.11

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AMA Style

Yohans Teshome Negashi. Determining the Factor Affecting Property Value Increments: The Cause Study of Dire-Dawa City, Ethiopia. J World Econ Res. 2022;11(1):1-10. doi: 10.11648/j.jwer.20221101.11

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@article{10.11648/j.jwer.20221101.11,
  author = {Yohans Teshome Negashi},
  title = {Determining the Factor Affecting Property Value Increments: The Cause Study of Dire-Dawa City, Ethiopia},
  journal = {Journal of World Economic Research},
  volume = {11},
  number = {1},
  pages = {1-10},
  doi = {10.11648/j.jwer.20221101.11},
  url = {https://doi.org/10.11648/j.jwer.20221101.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20221101.11},
  abstract = {In the next 25 years, cities in the developing world will grow by almost 2 billion people, accounting for some 90 percent of world population growth. This growth will create a huge demand for infrastructure. Infrastructure investment will be required to make cities efficient locations for economic production, to provide basic services for a larger population, and to upgrade public services in line with household incomes. At the same time, population and economic growth will drive increases in urban land and property values. The ability of cities to finance the needed infrastructure will depend in large part on their ability to capture a portion of these gains and to channel them into infrastructure finance. This shows the various ways in which land values can be used to help pay for investment in infrastructure, in addition to their role as part of the property tax base as well as Land has a long history as an instrument of urban infrastructure finance. The main aim of this research article focuses on the possibility to implement land value capture to finance to expand infrastructure in the city. This research article tries to investigate how the factors affecting property/ land value increment and land value capturing mechanisms are implemented when a government provides different infrastructures expansion to community and the property value increment around that infrastructure corridor in Dire Dawa city. However, further investigation should be started nation-wide to discover the problems throughout the country. The study applied both qualitative and quantitative approaches where primary and secondary data sources were used. The data analyzed using Microsoft excels, Strata software and regression analysis (SPSS). The regression analysis shows that, the identified independent variables that affect the property value at 89.5%. The finding of this study showed that there was a higher need for sustainable fund sources to respond to an increase in road infrastructure expansion demand in the future. However, there is a big gap between the actual practice of land value capturing, valuation methods, practice, the laws and proclamation. Lack of application of consistent land value capturing mechanisms and procedures created situations of a shortage finance to provide infrastructures service to the whole community in the city and to obtain the sustainable funding sources. Therefore, applying land value capturing is legitimate to solve the shortage of finance for future expansion of different public infrastructure expansion in Dire Dawa City.},
 year = {2022}
}

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