Willingness to Pay for Sustainable Features in Prime Residential Submarkets of Lagos

Abstract

In this study, I examine the market potential for various sustainable features by residents in Lagos prime residential submarket in the context of their willingness to pay (stated and revealed preferences) for green features. The study is of great significance as Nigeria is likely to produce a green building policy and certification standard in the near future through the Green Buildings Council of Nigeria. Data were obtained through the distribution of 150 questionnaires to households and evidence of lettings in Ikoyi and Victoria Island, the two prime residential neighborhoods in Lagos. The findings show that occupiers are willing to pay for sustainable features. The findings also indicate that poor electricity provision, dark staircases, and poor indoor air quality have a negative effect on rental price.

Keywords

• energy efficiency
• green features
• submarket
• wtp
• willingness to pay