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An Integration of GIS in the Valuation of Inner-City Properties

Applicability of the Von Thünen Model in Dar es Salaam, Tanzania

Authors

  • Businge Telesphor chakwita Ardhi University
  • Sanga Senior Lecturer Ardhi University, Department of Business Studies, in the School of Earth Sciences, Real Estate, Business and Informatics

DOI:

https://doi.org/10.48346/IMIST.PRSM/ajlp-gs.v7i4.48724

Keywords:

CBD, Von Thünen model, property Values, GIS, Proximity, Suburbs

Abstract

Context and background

The study investigated the spatial dynamics of property values in a sample total of 19 out of 26 Wards of Ilala Municipality in Dar es Salaam, Tanzania. Property values are encumbered by many other realities that were hardly considered in the traditional Von Thünen propositions including transport patterns, communications lines, informality and social amenities that affect both land use and property values. Therefore, while Von Thünen's model provides valuable insights, its application to contemporary property valuation and land use planning requires adaptation and integration with advanced analytical tools and methodologies to account for the multifaceted dynamics shaping urban environments.

Goal and objectives

The goal of the study was to investigate the spatial dynamics of property values in Dar es Salaam. Three models were implemented, utilizing rent per month from online advertisements of asking prices and secondary data from the Ministry of Land Housing, Human Settlement Development (MLHHSD). The application of the theory of Von Thünen to investigate the spatial dynamics of property values in Dar es Salaam is particularly noteworthy in three models that were implemented.

Methodology

The study utilized a sample total of 19 out of 26 Wards of Ilala Municipality in Dar es Salaam, Tanzania, to investigate the spatial dynamics of property values. Data were collected from online advertisements asking prices for rent per month and secondary data from the Ministry of Land Housing, Human Settlement Development (MLHHSD). Three models were implemented, applying the theory of Von Thünen to analyze property value dynamics in Dar es Salaam.

Results

In Table 4, the "Intercept" row represents the intercept term (ß₀) in three different linear regression models: LV (Property Values), RM (Rent Per Month), and AS (Actual Sales Per Sqm). In the LV model, the intercept (ß₀) is approximately 2,459,790, with a t-statistic of 3.43 indicating statistical significance. In the RM model, the intercept (ß₀) is approximately 4,925,036, with a t-statistic of 1.8 indicating some significance compared to the LV model. These findings suggest insights into the spatial dynamics of property values in Dar es Salaam.

Author Biography

Sanga, Senior Lecturer Ardhi University, Department of Business Studies, in the School of Earth Sciences, Real Estate, Business and Informatics

Senior Lecturer Ardhi University, Department of Business Studies, in the School of Earth Sciences, Real Estate, Business and Informatics

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Published

01-10-2024 — Updated on 30-09-2024

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How to Cite

chakwita, B. T., & Alananga, S. (2024). An Integration of GIS in the Valuation of Inner-City Properties: Applicability of the Von Thünen Model in Dar es Salaam, Tanzania. African Journal on Land Policy and Geospatial Sciences, 7(4). https://doi.org/10.48346/IMIST.PRSM/ajlp-gs.v7i4.48724 (Original work published October 1, 2024)

Issue

Section

Land Policy and Regulatory Framework

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