Analysis into the benefits and challenges of property conversion from residential to commercial use

Abstract

The research was aimed at assessing the benefits and challenges associated with the conversion of residential houses to commercial use. The problem considered was the degree of uncertainty related with the process, benefits, and implications of property conversion from residential use to commercial use since the challenges involved in conversion of property use posed an unevaluated risk to the property holder. These specific objectives were; to identify the factors influencing the conversion of residential properties to commercial use, to evaluate the patterns of rental value in the study location and to assess the extent of the socio-economic implications of changes in land use. The area of study was in Soroti city in the Eastern region of Uganda, the case study was Akisim suburb. Theoretically the research considered the theory of Highest Use and Best Return as a factor in the conversion of land use. In the literature review the following studies were considered; Residential Units to Commercial Spaces in Accra, Ghana: A Policy Dilemma and Land Use Change Propensity Maps. The literature review contained information on; factors responsible for residential conversion, processes of residential to commercial conversion, conflict between residential unit conversions and land-use regulations, projections of land use change propensity, the methods of creation of propensity maps, and statistical inference of binary logit model parameters. The population sample size considered in the study was ninety-five. This included all occupiers of houses with a change in land use, estate surveyors and valuers. Tenants, landlords, heads of households, and valuers were considered in this survey. Questionnaire, observation, and document review data collection techniques were used. The “higher returns” factor had the highest influence on property use conversions, while “prompt rent payment” had the least influence. Commercial properties had the highest use and best returns on investments, while Industrial or Agricultural land use had least use and returns. The trend in ARV in Akisim suburb between 2010 and 2020 indicated a steady increase. Property use conversions resulted into; alterations in the original

zoning plan of Akisim suburb, a sharp increase in land values, risky environmental conditions due to increased pressure on the local amenities, and concerns about the availability of housing units in Akisim suburb. The findings and results were presented in form of frequency tables, pie charts, and graphs. The conclusion was based on results and findings related to the measurable specific objectives. The recommendations were drawn based on the conclusion.