The Influence of fluctuations in the cost of building materials on residential property development in Minna

Abstract

This study investigates the Influence of fluctuations in the cost of building materials on residential property development in Minna. Data were collected from 242 individuals belonging to building material sellers association and civil servantsfrom: Niger State Housing Cooperation, Niger State Ministry for Works and Infrastructural Development, Niger State Urban and Rural Development and Contractors with professionalism in property development and construction. The study comprehensively analyses historical data on annual average prices of various building materials and the construction costs of different types of residential properties which include one-bedroom flats, two-bedroom flats, and three-bedroom flats for eight-year period from 2015 to 2022 in Minna. The study revealed a critical upward trends in rising costs of building materials and a general increase in the construction costs of the different types of residential properties over the study period, which can pose substantial challenges to residential property development in the study area. Based on the statistical analysis conducted using Pearson chi-square test, the study shows that there is a significant relationship between the building material cost and construction cost of residential property development. In light of these findings, it is imperative that industry stakeholders, including builders, developers, government bodies, and professionals, collaborate to devise and implement effective measures to mitigate the impact of rising building material costs on residential property development. These measures should include diversifying material choices, exploring cost-effective alternatives, implementing risk management strategies, promoting sustainable practices, and advocating for government support and policies to stabilize material prices. Furthermore, continued market research, education, and training are essential to ensure the long-term sustainability and growth of the construction industry in Minna, Niger State.