Complete Material Cost #3,000
Order for Complete Material now
Abstract
This study is on effect of rising cost of building material on property development in Uyo, Akwa Ibom State and the aim is to examine the major causes of higher cost of building materials and its effect on property development in terms of completion time, quality and quantity in the area of study. The study adopted simple random sampling technique in accessing the various categories of respondents namely property developers or owners, building material dealers and estate surveyors and valuers in the study area. Both primary and secondary data were obtained through the design and administration of questionnaire, oral interviews, personal discussions as well the use of books past project and others research materials. The data obtained was analyzed through simple statistical tables and percentages to get the desired information. The findings of the study includes that the weak or poor exchange rate the Naira, over reliance on impacted building materials, lack of subsiding on the materials as well as unstable political structure at the Federal, State and Local Government are the major causes of rising cost of building materials in the study area. The study therefore recommends that government should through appropriate macroeconomic policy strengthen the exchange of Naira; subsidies important of building materials by lowering taxes or tariffs; encourage local manufacture of building materials as well as ensure political stability at the Centre. Property developers should also embrace the habit of engaging the services of professional estate surveyors and valuers particularly in the aspect of feasibility and viability studies that is critical to property development. Now this dissertation has been spread across five conventional chapters namely chapter one which is introduction; chapter two is literature review; chapter three is research methodology; chapter four is data presentation, analysis and interpretation while chapter five is summary and findings conclusions and recommendations.
Table of Contents
Title Page i
Certification ii
Acknowledgements iii
Dedication iv
Abstract v
Table of Contents vi
List of Figures ix
CHAPTER ONE 1
INTRODUCTION 1
1.1 Background to the Study 1
1.2 Statement of the Research Problem 3
1.3 Aim and Objectives of the Study: 3
1.4 Research Questions 3
1.6 Scope of the Study: 4
1.7 Significance of the Study: 4
1.8 The Study Area 4
1.9 Limitation of the Study: 8
1.10 Definition of Operational Terms: 8
CHAPTER TWO 11
LITERATURE REVIEW 11
2.1 INTRODUCTION 11
2.2 Objectives of Property Developments 11
2.3 Property Development Process 13
2.4 Those Involves in Property Development: 17
2.5 Forms of Property Development 21
2.6 Types of Property Developers 23
2.7 Sources of Property Development Finance 24
2.8 Type of Building Materials Used in Property Development 28
2.9 General Effect of Rising Cost of Building Materials on Property Development 29
CHAPTER THREEE 33
METHODOLOGY 33
3. 1 INTRODUCTION 33
3.2 Research Design 33
3.3 The Study Population 33
3.4 Sampling Techniques and Sampling Size 34
3.6 Methods of Data Collection 34
3.7 Methods of Data Analysis 36
CHAPTER FOUR 38
DATA PRESENTATION, ANALYSIS AND INTERPRETATION 38
4.1 INTRODUCTION 38
4.2 Analysis of Questionnaires and Response Rate 38
4.3 Analysis of Respondents Characteristics 39
4.4 Analysis of Data and Result 41
4.4.1 Property Developers/Owners 41
4.4.2: Building Material Dealers 43
4.4.3: Estate Surveyors &Valuers 46
SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATIONS 50
5.1 INTRODUCTION 50
5.2 Summary of Findings 50
5.3 Conclusion 51
5.4 Recommendations 51
References 53
APPENDIX 1 55
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Building (Housing) is a basic need of every human being just as food and clothing (Adebola, 2003) it is very fundamental to the welfare, survival and health of man (Fadamiro et al 2004). Hence, housing is one of the best indicators of a person’s standard of living and his place in the society.
The World Health Organization (WHO) stated that a good house should have the following items:
i. A good roof to keep out rain.
ii. Sun shades all around the house to protect bad weather and keep out animals.
iii. Wire netting at windows and doors to keep out insect like houseflies and mosquitoes.
iv. In essence, housing quality can be judged from physical appearance of the building facilities provided quality of wall used in the building construction eminence of the rooting materials condition of other structural components of the house and the environmental condition of the property (Mabogunja, 1980).
Therefore, in order to obtain a good and comfortable living, property developers attributes processes whereby they plan, organizes funds for a long period before actualization.
Within the period, the economy all things being equal fluctuate (either high or low) which in turns impact on developers proposal and plans affecting the development.
Building materials follows the same trend since it is an economic product, researches, conferences are held all over the world on various aspects of economic development for the way forward.
Economically, every nation’s experiences economic fluctuations (Dollars, Pounds, Starlings and Naira). The devaluations of a particular currency affect the economy of nations which in turn affect the industries and at the long run impact on development (property development).
Cost of erecting buildings have sky rocketed there by making the dreams of property development a mirage, all these have had attendant consequences on the users owners and who are directly or indirectly involved in real estate market and development (Olusola, 1990).
Property development needs have been in the increase in Uyo capital city of Akwa Ibom State since her Creation of Administration, Educational Centre, Trade and Commerce etc is characterized with increase populations of the people this has affected the property development negatively due to incessant increase in the cost of building materials.
This research turns to look at such impact especially when it is high on development in a particular reference to Uyo Capital City.
1.2 Statement of the Research Problem
This research work is to determine the factors that lead to the inflation of the market price of building materials and the attendant challenges on property development, in terms of time, quantity and quality. Building material, prices have been on the increase in yearly basis.
1.3 Aim and Objectives of the Study:
This aim of this research is to elicit the impact or the cause of rapid cost of building material on property development in the study area.
i. To identify the need for building materials in property development.
ii. To rectify the class of developed properties in the study area.
iii. To evaluate the trend of increase in the price of building materials.
iv. To ascertain the negative impact of such increment on property development.
v. Reconciling the high cost of building materials on property development in order to proffer possible solutions as well as providing affordable accommodations to the teeming population in Uyo, Akwa Ibom State.
1.4 Research Questions
i. What are the types of building materials in Uyo, Akwa Ibom State?
ii. What are the classes of landed properties that are developable in the area?
iii. What are the causes of sky rocking increment of building materials in the area?
iv. How does increase in price of building materials affect property development in the area?
v. How can we mitigate such escalating impact on property development?
1.6 Scope of the Study:
The scope of this research is limited to industrials, residential and commercial property development in Uyo the capital of Akwa Ibom State and its limited to Uyo metropolis.
1.7 Significance of the Study:
Findings from the study will educate the public on the current cost of building materials in Uyo and its effect on property development. The result of this study will sensitize the policy makers and the government on the need to make and implement policies that will reduce the rising cost of building materials in Uyo metropolis, therefore encouraging massive housing development all over the state capital. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently.
1.8 The Study Area
Uyo is the state capital of Akwa Ibom an oil (crude) producing state in Nigeria. The town became the capital of the State on September 25, 1987 following the creation of Akwa Ibom State. The population of Uyo according to 2006 Nigeria census which comprises Uyo and Itu is 427, 873.
Uyo is located within the latitude of 4°30 and 5°30W and longitude 7°65 and 8°20E.
The area covers about 304, 769 km. Uyo is located on an elevation of about 60.96m (200ft) above sea level.
The vegetation of Uyo can be classified under oil palm on the North and South in the South Eastern part of the Country. Furthermore, the climate region where Uyo falls under in the sub-equatorial south where the temperature remains relatively constantly high throughout the year but are reduced by cloud cover in the raining season. Annual range is below 80°c relatively humidity is also high for most of the years.
It varies between 85% in the rainy months and between 50% in the driest months. The dry season last from December to February which rainfall usually begins from march reading its peak by July followed by a short August break (Udo 1970).
The city can be reached by road via A342 high way as well as Nwaniba Raod, Willington Bassey way where you have governors annex, governors resident and the area command police station, Ikot Ekpene Road Abak Road and Aka Road. Nearby Airports include Victor Attah International Airport at Okobo and Margret Ekpo international Airport in Calabar.
Uyo in fast growing city as it has witnessed some infrastructural growth in the past 15years, it has intensive network of road such as IBB way, Atiku Abubakar Avenue, Udo Udoma Avenue Nsikak Eduok and Edet Akpan Avenue which are eight lanes super way and currently the widest road in Uyo.
Uyo lacks modern rail infrastructure as in common in most new post colonial towns in Nigeria, taxis, buses and tricycles are the major means of transportation. Motorcycles are restricted to the city limits and tricycles are restricted from operating within 10 kilomitres radius of the city centres.
Uyo is a home of many notable housing districts such as the Ewet Housing Estate, Osongama Estate and Shetlter Afrigue. The city is notably neat and hospitable for foreigners and its origins. High brow resident in Uyo includes, the Prestigious Ewet Housing Estate, Osongama, shelter Afrigue and a host of other choice areas in the Town and its environs. The city boast Recreational Areas such as the Ibom Connections popularly known as Ibom Plaza, Ibom Tropicana, entertainment Centre prestigious Le Meridian Ibom Hotels and Golf Resort (5 Star Hotels), and Godswill Akpabio International Stadium.
Uyo is a home university of Uyo formerly known as University of Cross River State. Its name was changed in 1991 when the government of Nigeria established it as a Federal university, it campus in Ikpa road, permanent site main campus Nwaniba Road, UUTH/Medical campus at Abak Road and Ime Umana Campus at Ediene Abak, Uyo city polytechnic (Former School of Accountancy), and various secondary and primary schools which are both public and private (Inyang 2000).
1.9 Limitation of the Study:
This study was faced with many challenges which acted as limitations. These includes:
1.9.1 Inadequate Finance: The research of this magnitude requires sufficient fund at the disposal of the researcher for purpose of factual survey and cost of production. However, finance was grossly inadequate and this affected time for the completion of this work.
1.9.2 Time Factor: This was grossly insufficient s the available time was used for classroom activities, field trip, practical and project research work. The principle of time basis was the only approach to manage the limited time.
1.9.3 Dearth or Lack of Necessary Research Materials: This constitute a great challenge to the researcher information obtained from the internet and other materials were scanty.
1.9.4 Uncompromising Attitude of Respondents: Some of the respondents did not cooperate and this affect the completion time of this project.
1.10 Definition of Operational Terms:
The following specific terms have been defined in the study:
Building: Is defined as a structure that is permanently attached to the land, has a roof, is partially or completely endorsed by walls, and does not intend to be transportable or moveable.
Housing: Mandelker and Mokgomery (1973) described housing as a product and a process. As a product, housing refers to the end product of the construction work in terms of the structure, designs , space, lighting, heating sanitary facilities as well as other conveniences. On the other hand; as a process involves the construction, neighborhood planning, urban and regional planning as well as environmental management.
Agbola (1998) pointed out that the process of housing delivery involves the product of new housing renovations of existing units and the dispersal of both new and existing housing for those that demand.
Property Development: Property development is a process that involves changing or intensifying the uses of land to produce building for occupying or commercial use (Reeds and Willkinson, 2008).
Section 2(2) of the British Town and Country Planning Act 1947 defines development as the carrying out of building engineering, planning or other operations in one over or under land or the making of any material change in the use of any building. According to Kelvin Nubor (2018) posited that development is considered to have taken place once there is any building or rebuilding there on for a purpose which is different from the purpose for which the land or building was last being used.
Building Material: Is any material which is used for construction purposes. Many naturally occurring substances, such as clay, rocks, sand, and wood, even twigs and leaves, have been used to construct buildings. Apart from naturally occurring materials, many man-made products are in use, some more and some less synthetic. The manufacturing of building materials is an established industry in many countries and the use of these materials is typically segmented into specific specialty trades, such as carpentry, insulation, plumbing, and roofing work. They provide the make-up of habitats and structures including homes.
Property Developer: The commercial developers may be defined as an entrepreneur who established the organizations and capital required to make building available in anticipation for returns or profits (Nwanekezie 1996).
According to (Nubor 2018), posited that a developer is essentially an entrepreneur accepting the risk of producing for an uncertain demand when the developers forcast proves correct he makes profit but if otherwise he incurs losses.
Complete Material Cost #3,000