The Effect of Rising Cost of Building Materials on Residential Property Development (Case Study Ijede)
Chapter One
Objective of the study
The objective of the study is to find out the effect of rising cost of building materials on residential property development. The specific objectives are;
- To ascertain the factors responsible for the increasing cost of building materials in the Ijede area of Lagos State.
- To examine factors militating against property development in the study area.
- To examine the effect of rising cost of building materials on property development in the study area
CHAPTER TWO
LITERATURE REVIEW
CONCEPT OF BUILDING MATERIALS
Shyllon (2004), Observed that building materials can be classified into three (3) main groups. Traditional, modern or conventional and innovative building materials. The traditional building materials include laterite, bamboo thatch, which are produced with rudimentary technology in small scale and are characterized by low quality performance. The low quality performance may have led to the development of conventional building materials which include cement, blocks, rod, steel, glass and corrugated roofing sheets, which are characterized by expensiveness, scarcity, and high import inputs. The third category which he refers to as innovative, represent the combine effort to improve on both traditional and conventional building material through research development aimed at improving alternatives to import based materials. Aliyu, Kasim, and Martin, (2011) acknowledged that development of local building materials could resolve most of Nigeria’s shelter problems Brian (2015), maintained thatthe cost is rather too high compared to the united nation approved 25%. This problem according to Opara (2003), ranges from spiraling cost of building materials and stated that it is quite clear that the building construction sector is reset by serious difficulties as a result of the deregulation in the economy. The most among it are import dependency and inadequate product of local building materials. This increases the cost of construction because of high exchange rate, transportation cost, among other problems. This consequently led to inadequate and unaffordable housing unit in Nigeria, as conventional building materials are beyond the reach of an average Nigerian. Arayela (2002), Opined that it is imperative to seek ways in which to bring down the cost of construction and make it attractive. He further added that, currently in Nigeria, stabilized laterite bricks are being used to reduce the cost of construction. Opara (2003) further asserted that, intensification of research and development of locally sourced buildingmaterials will go a long way in solving this problem of spiraling cost of building materials. Furthermore, building materials has been undergoing a lot of transformation in the past two decades, The Nigerian economy has been tendering further towards capitalism. With the introduction of Structural Adjustment Programmed (SAP) and subsequent privatization and commercialization. The effect of this problem cannot be negative or positive. Most of our building materials even construction technology have high foreign compound (Olowo 1988). Presently less, developed nation is growing very fast three times as industrialize nation. In the future we can expect that some of the poorest nations in production of building materials will grow row at even faster rate, as far there is availability of raw materials to the benefit of a common Man.Hussein (1998) observed that at all stages of construction, over 80% 0f the construction materials used in the country are imported as finished product when the foreign exchange is scarce consequently material shortage occur since their demand outstrip restricted supply. Fos (1997) further describes the rise in building material cost as uncontrolled- hyper- inflation;
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries
RESEARCH METHOD
For the purpose of this work, study method was used for this research. This method facilitates the effective gathering of data through sampling of a small size of the population and generalizing the findings on the entire population. This method is considered appropriate for this study because it will help the researcher to discover relative incidence and distribution on the population. However, for this research work the study population comprises of forty (40)property developers, forty (40)Contractors and 40 building materials dealers operating in Ijede area of Lagos state. The sample size of this project is 120; this comprises property developers, Contractors and Building materials dealers operating within Ijede area of Lagos state which were targeted for administration of questionnaire. Random sampling technique was used as appropriate sampling technique because it is more objective in the selection of sample. Self- administered questionnaire was the main instrument used for the study
STUDY AREA
Ijede is a local council development area in Lagos State, Nigeria. The present chairman of her council is Hon. Motunrayo Gbadebo-Alogba.
Ijede Local Council Development Area is one of the 37 LCDAs created from the original 20 Local Governments in Lagos State by the Administration of Senator Bola Ahmed Tinubu (Jagaban Burgu) In the year 2003. Ijede Lcda was carved out from the old Ikorodu Local Government. The Lcda consists of the following communities: Ijede, Egbin, Oke Eletu, Ginti, Igbodu, Abule Eko, Igbopa, Ilupeju, Igbe Kapo, Igbe Ogunro, Igbe Oloja, Ayetoro, Ipakan, Iponmi, Ewu Owa, etc. The people are traditionally into agriculture.
The Lcda could also boast of the biggest Power Station in the West African Sub region. The Egbin Power Station. Ijede Lcda had been administered by both the elected Chairmen, Executive Secretaries as well as Sole Administrator since its inception 14 years ago. The Lcda has good arable land fertile enough to engage in massive mechanized farming as well as agricultural and agro allied businesses.
For a serene environment, Ijede is one of the best place to look for comfort after a long busy and tedious working day to cool ones down. A relaxation in any of the relaxation centers within Ijede Lcda will be a memorable experience that will not be forgotten in a hurry. There is peace and tranquility in and around Ijede and the people are very accommodating.
Ijede Lcda has 4 political wards namely Ward A B C and D. Ward A Consist of Egbin, Ipakan, Ebute Olowo, while Ward B consist of Aledo, Oju Ayepe, Ayegbami, Etita, Oju Ogun, Itundesan, Oko Mabude. Ward C consist of Oke Oyinbo, Madan, Pacific, Welcome, Oko Ope, Igbe. While Ward D consist of Abule Eko, Igbopa, Oke Eletu, Gbodu, Igbodo Jabe, Ilupeju.
The council is presently headed by Alhaji Fatiu Salisu as the Executive Chairman. The Ijede Lcda is headquartered at No 1, Madan Street Ijede overlooking the lagoon serenity for which Lagos is known for.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the effect of rising cost of building materials on residential property development. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of rising cost of building materials on residential property development.
Summary
This study was on the effect of rising cost of building materials on residential property development. Three objectives were raised which included; To ascertain the factors responsible for the increasing cost of building materials in the Ijede area of Lagos State, to examine factors militating against property development in the study area and to examine the effect of rising cost of building materials on property development in the study area. From the foregoing analysis, it is evident to conclude that building materials prices being the single largest element in the total cost of building project has drastically affected the volume of property development in Ijede area of Lagos state in particular and indeed the whole country. Numerous factors are responsible for incessant increase in building materials such as price. This price movement has affected the standard of living, the expectation and people’s aspiration to own a home and the livelihood of individual occupant in the area. The cost of building materials can be reduced by government through lifting of ban and established new industries to enhance the importation and manufacture of the building materials like cement, roofing sheet and paint.
Conclusion
A close observation of the factors responsible for the rising cost of building materials reveals that government policy and the present economic situation of the country are the most significant factors responsible for the rising cost of building materials in Ijede. The rising cost of the building materials has high implication on affordable housing provision in the study area and has a high implication on construction cost and risk of project abandonment due to delay in project completion as well as the construction of substandard building as well as a hike in the price of rent paid by tenants in the houses. This explained the findings of Dlakwa and Culpin, Jagboro and Owoeye that increase in the prices of building materials has multiplier effects on the industry. The attendant effect of the rising cost of building materials is the likelihood of a downward effect on affordable housing provision and in housing development at large in the study area
Recommendation
Government should liaise with professionals in the building industry to organize seminar/workshop that will aim at encouraging research effort on the development /use of more local manufactured industries for building materials using the local contents
Government should serve as a model for local building materials utilization in housing development through building of more accommodation using such materials
References
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