Considerations for a hedonic model in the valuation of church property: an exploratory study of emerging parish churches in Nigeria

Purpose The purpose of the study was to explore whether a hedonic model could be used to enhance the estimation of church properties’ value in the place of traditional methods of valuation. Design/methodology/approach The study adopted survey research design. Data were collected through physical inspections/observations and measurement of the church properties and extracts from published church documents. A total of 74 church properties including old and modern churches in Enugu, Nigeria were analysed by testing 14 separate independent variables (property attributes) and ancillary facilities of the church using a hedonic model. The data were analysed using descriptive and inferential statistics at p < 0.05. Findings The study showed that 61.3% of the variations in the value of church building is explained by 14 independent variables and 58.6% were explained by five variables: designed door and windows, seating capacity, parking arrangement, availability of priest/clergy house and availability shops; and were statistically significance at p < 0.05. These results revealed that the hedonic model could be used to determine the value of church properties in place of traditional approaches (cost methods and market comparison). Research limitations/implications The limitations to this study are that the data sets for the study were collected from 74 sampled churches properties which are located in Enugu urban. The data on dependent variable would have been on the sales prices of churches for a period of time; however, it was not possible due to absence of information on sales of church properties in the study area. Practical implications It advocates the use of hedonic models in valuation of church properties as it takes into consideration all properties’ attributes influencing the value of the properties. The study suggests that valuers should employ hedonic models in valuation of church properties and should take into consideration such factors as: designed door and windows, seating capacity, parking arrangement, availability of priest/clergy house and other ancillary facilities like shops rather than restricting to the traditional cost method. Originality/value This is an exploratory study advocating a more scientific and robust approach to valuation of church property as opposed to the traditional approaches. It argues that the value or income of a church is significantly influenced by factors such as designed door and windows, seating capacity, parking arrangement, availability of priest/clergy house and availability shops and other ancillary facilities.