Posted: 2023 | Pages: 63 | Format: MS Word | Chapters: 1-5 | Others: Questionnaires & References

Price – N3,000

ABSTRACT

The impact of cost of building material on property values (a case study of Achara Layout Enugu).  The study aimed at determining the impact of cost of building materials in property value in Achara Layout in Enugu State which described four major objectives and four research questions. The problem of the study arises how cost of building materials in Nigeria has hampered the increase in stock of buildings to meet the seemingly demand of ever increasing population. The study has four research questions and one hypothesis. The design was done using survey research design and its estimated population of the study is 415 which comprises of dealers of building materials, landlords and Estate Surveyors and Valuers with estimating sample size of 139 using Taro Yamane’s formular. Data was presented using percentage table and chi-square for testing of hypothesis. Many findings were done such like rising cost of building material has a serious effect on the supply of buildings. Again, government has not been able to affect any change in this sector in aspect of reducing high cost of building materials and also there should be a stable economy in the country. Recommendations were made that government should make frantic effort towards the procurement of building materials so as to bring down the high cost at which developers have been obtaining them. There should be procurement of building materials by the government so as to give it an exact or fixed price at which these materials could be bought so as to encourage developers and developers on this part should call back their contractors when they abandon the site as a result of sharp rise in prices of building materials.

CHAPTER ONE

1.0   INTRODUCTION

Property development has been on the decline for sometime. The situation is made more sharing by the rate at which the demand for property by the end. Users has out placed the supply for same. By the rate at which the demand and supply imbalance is steadily widening. It is obvious that the solution to the problem is not yet in sight, records available in the statistics division of the Ministry of Works and Housing confirm the existence of this demand and supply in balance thus agitating the need for urgent measures to correct it.

 There is a preponderance of abandoned building projects. Such sign create the impression of lack of planning. Investigations however, revealed that these were results of sudden and unexpected rises in the cost of building materials, thus causing unexpected rise in the of buildings.

Painfully enough most of these buildings were initially financed from borrowed fund at high interest rates. Then abandonment nevertheless compounds the debt of the borrower or developer because the cash flow expectation as well as repayment target period will never be met again. This again calls for total review of the project with consequential cost increase and general loss. The aftermath of the development is protracted litigation between banks and their customer when the former embarks on sweeping loans recovery.

This ugly scenario has been what scares most investors from property development because of the dynamic natures of influencing factors that determine property values.