IMPACT OF RISING COST OF BUILDING MATERIAL ON PROPERTY DEVELOPMENT
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IMPACT OF RISING COST OF BUILDING MATERIAL ON PROPERTY DEVELOPMENT
CHAPTER ONE INTRODUCTION
1.1 STUDY BACKGROUND
The Nigerian construction industry is a developing industry; the sector is seen as a growth driver, and its success serves as an indicator of the country’s economy (Akanni et al., 2014).
It is backed by the Construction Players Association, which includes developers, contractors, building material and equipment suppliers, manufacturers, financiers, regulators, and others in the value chain.
Building materials have long been used in the construction sector. They are the materials used in the construction of structures; no discipline of engineering would be possible without their utilisation (Akanni, 2006; Udisen and Akanni, 2010).
Building materials have a significant impact on the quality and cost of housing, from the materials used in the foundation to the materials used for roofing and finishing,
and the building material industry is an important contributor to any nation’s national economy because its output governs both the rate and the quality of construction work.
The cost of building materials is a major concern for both the construction business and consumers who want to own a home (Anosike, 2009; Mekson, 2008; Mohammed, 2008; Njoku, 2007).
For example, a bag of cement valued at N1350 in 2006 rises to N1850 in 2009 (Anosike,2009), representing a 37% increase; the bag rises to N2000 in 2012 during peak season (Field study 2012).
Supporting this viewpoint, Jagboro and Owoeye (2004) previously established that increases in building material prices have multiplier effects on the industry, while Idoro and Jolaiya (2010) confirmed that many projects were not completed on time due to rising material costs.
Aside from timely completion, high building material prices are a major impediment to improving housing standards in low-income nations, including Nigeria (United Nations Centre for Human Settlement (UNCHS),1993).
1.2 STATEMENT OF THE PROBLEM
In light of previous studies on the cost of building materials in Nigeria, little is known about the effects of rising costs on property development; most literature (Jagboro and Owoeye,2004; Meckson,2008; Njoku,2007; Oladipo and Oni,2012)
has focused on identifying the causes with little emphasis on the implications; thus, the research seeks to provide information on the effects of rising building material costs by examining their influence on property development.
1.3 OBJECTIVES OF THE STUDY
The study’s main goal is to investigate the effects of growing building material costs on property development.
1.4 RESEARCH QUESTIONS
(1) What exactly are building materials?
(2) What exactly is real estate development?
(3) What are the reasons that can raise the cost of construction materials?
1.5 THE IMPORTANCE OF THE QUESTIONS
This study provides a clear picture of the effects of increased building material costs on property development. The study also yields data that corroborate the findings of much earlier research in this sector.
1.6 SCOPE OF THE STUDY
The study focuses on the impact of growing building material costs on property development.
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