Assessing the Impact of Setback Enforcement on Commercial Property Values in Ilorin Metropolis, Nigeria

Setbacks are critical urban planning tools aimed at promoting safety, accessibility, and environmental quality. This study explores the economic impact of setback compliance on commercial property values in Ilorin Metropolis, Nigeria. A quantitative approach was employed using structured questionnaires administered to 53 purposively selected commercial properties across major districts affected by setback enforcement. Key variables included property size and rental values before and after setback clearance. The analysis used a simple linear regression model, with rental value change as the dependent variable and property area as the independent variable. Results showed a modest R² value of 0.149, suggesting limited explanatory power, though the Durbin-Watson statistic (2.567) indicated no autocorrelation. Despite the low R², the model's ANOVA significance level (0.004) affirmed its reliability. Findings revealed a significant positive relationship between setback compliance and commercial property value. Properties that complied with setback regulations tended to have higher market values, attributed to improved aesthetics, accessibility, and increased customer patronage. The study concludes that enforcing setback regulations not only promotes urban orderliness but also enhances the economic value of commercial properties. It recommends increased enforcement and public awareness to support compliance, contributing to sustainable urban development and economic growth.