Assessing Functional Obsolescence Impact on Property Values in Komarock Sector III, Nairobi County

Abstract

This study investigates the impact of functional obsolescence on property values in Komarock Sector III, Nairobi County, illuminating how outdated designs and the lack of modern amenities contribute to declining property values. Utilizing a case study approach, including surveys with property owners and valuation professionals, alongside Spearman’s Rank Correlation Coefficient analysis, the study uncovers a negative relationship between the degree of functional obsolescence and property values. Findings reveal that as properties become more functionally obsolete, their market value tends to decrease, highlighting the significant influence of contemporary standards and preferences on real estate valuation. The study underscores the importance of regular property upgrades and renovations to mitigate the effects of obsolescence and recommends policy development aimed at sustainable urban planning to encourage future-proof building designs. Through these strategies, the study suggests that property owners and developers can maintain or increase the market value of their properties, ensuring their competitiveness in the real estate market.