Assessment of Impact of Rise in Price of Building Materials on Real Estate Development: A Case Study of Lagos State, Nigeria

Abstract

This paper examined the influence of rise in price of building material on real estate development in Nigeria with the specific objectives to identify factors responsible for increase in the cost of building materials and also to assess the impacts of rise in price of building materials on real estate development. One hundred and thirty structured questionnaires were distributed in which one hundred and fifteen were returned completely administered. The data collected were analyzed using linkert ranking method. It was reviewed that demand and supply has largely contributed to increase in the cost of building materials, and also could be deduced that increase in the price of building materials will directly affect rental value of property. From the analysis, it was strongly believed that rise in the cost of materials could force developers to use substandard materials. The paper recommended that government should also encourage the use of local material for property development. Standard organization of Nigeria and other regulatory bodies for quality of manufacturing products should be made functional in order to ensure quality products are not compromised for cost.
Keywords: Material, property development, building, real estate, price