THE EFFECT OF HIGH COST OF BUILDING MATERIALS ON PROPERTY DEVELOPMENT (A CASE STUDY OF ILE-IFE IN OSUN STATE)
In any planned economy of the world, the issue of high cost of building material cannot be over-emphasized. There should be a regulatory bodies or agencies of government with the view to achieve harmonic development in real property market in such a way and manner as to promote economic growth and satisfaction to the terming population who invest in this sector of economy as a result of significant role building materials play in real estate, there must be a check to any abnormal rise in such materials being used in other not to cause high cost of building construction.
However, due to weakness in regulatory agencies there is an alarming rate of inflationing trend leading to unstable economy in our nation which therefore has an adverse effect on the building industry.
Furthermore, due to the capital that will be part and property development, investor in real estate found it very difficult to build. And as a result there is delay in completion of any project been proposed to the done.
This study is therefore aim at highlighting the various problems with high cost of building materials on real estate development.
It is believed that the result of the study will provides the recommendation which if implemented will ensure effective control of high cost of building materials and enhance property development in real estate sector of our economy.
TABLE OF CONTENT
Title page i
Table of content v
1.1 Statement of problem
1.2 Aim of the study
1.3 Objectives of the study
1.4 Significant of the study
1.5 Scope of study
1.6 Limitation of study
1.7 Study area
1.7.1 Locational plan
1.8 Definition of terms
2.0 Literature review and conceptual framework
2.1 An appraisal of Nigerian’s economic policy on real market
2.2 Property development process
2.3 Those involved in real property development
2.4 Concept of real property development
2.5 Source of property finance
2.6 Concept of property investment
2.7 Factors affecting high cost of building materials
3.0 Research methodology
3.1 The research design
3.2 Data types and source
3.3 Instrumentation for data collection
3.4 Sample frame, sample size and sampling procedure
3.5 Method of data collection
3.6 Method of data analysis
4.0 Data presentation and analysis
4.1 Trend of building materials prices in the study
4.2 Types of property along with their rental values
4.3 Nigerian economic indicators
5.1 Summary of findings
Development has a wide meaning among Architects, Engineers and surveyor. Development has been defined by statute the best known being the town planning laws in Europe America, Africa and else where. The most collaborated of them all, the British town and country planning Act of 1947 has defined “Development building engineering mining of other operations in, on, over or under the land or the making of any materials charge in the use of any building or other land.
In the course of time, the cost of construction of a decent shelter for an average family began to rise, cost of building materials and inflation much more than thus, was the immediate need to contain the over populated urban centres, which were fast charring out ghettos of different sorts. The rise in the population could no longer be match with corresponding rise in the provision of good shelter for the populace majority of the people did not even have enough to live not to mention having money to build their own houses. There, nor arise a problem of providing shelter for the ever-emphasizing population in a depressed economy.
Properly development may be under taken to meet new or an expanding demand as in the case of house building be needed to replace existing assets in order to meet present demand more effectively or the supplant oblate properties.
1.1 STATEMENT OF PROBLEM
Due to instability of the economic which result into devaluation of the naira, building materials most of which are imported into the country have continued high in cost. This result to inadequate supply of building materials, shortage of accommodation and inadequate infrastructure development which affect housing supply.
1.2 AIM OF THE STUDY
The aim of the study is to examine the effects of high cost of building materials on property development in the study area.
1.3 OBJECTIVES OF THE STUDY
The objectives include:
1. To identify the various types of property development in the study area.
2. To examine various types of building materials
3. To examine the cost of building materials for some years.
4. To examine the effect of high cost of building materials on housing development
5. To recommend solution to the problem at hand.
1.4 SIGNIFICANT OF THE STUDY
This study could be used in solving problem that arise as a result of high cost of building materials as it related to property development.
It exposes the researcher to different materials and method of construction available in the industry in other to beat down cost of construction.
It will enable the industry to known how to improve in its services as per finding alternative approach in solving the problem at hand.
1.5 SCOPE OF THE STUDY
The disciplinary scope of this study is the effect of high cost of building materials on property development, while the spatial scope is on Ile-Ife.
1.6 LIMITATION OF THE STUDY
A. The time limit given for the project by the school Authority has limited a wide research on such topic.
B. Fund to run some expenses for the project is not sufficient which has restricted a wider study
C. People did not want to divulge information needed for the study because they though the exercise is meant for tax assessment.
1.7 THE STUDY AREA
Ile-Ife is a historic town its history is unique because ile- ife is regarded as the cradle of the Yoruba. The most valuable history and as a result of this been handed down by oral tradition and as a result of this , many valuable events of this historic town cannot be over emphasized by the use of date .
Nevertheless, the belief is alive that Ile- Ife the home of Yoruba, Oduduwa being the ancestor.
The formation of Ile –Ife as indicate by Rev Samuel Johnson (1921) is enhanced in many legends and same of these legends level written while other level still in written once of the legends state that the place now known as Ile Ife was originally covered with water . These were people around ore Iyere was once of them. One was a hunter who used to come to the areas to hunt but the water did not allow him to build a permanent settlement.
The story state that, god (Olodumare) sent Obatala to find Ile-Ife. the was gives a bag of a soil, a hen which have five toe, a chameleon and a symbol of authority which is known today as (Ase) in Yoruba . Obatala was instructed to put the soil on water then hen on the soil and the expectation was the that the hence will scattered the soil and the water would recede, the chameleon would best the solidity of the land so formed.( Longman 1921).
Oral traditions do not support the theory of migration same accounts of oral tradition stated that Ile- Ife was there life first originated. Obatala was the once instructed by ‘god’ (Olodumare) to mold a man when he had finished he report back to Olodumare who then gave lives to the molded bodies. Although oral tradition and history do not agree on how, and where Oduduwa come to Ile-Ife but the source accept Oduduwa as the founder of the Yoruba. Therefore all Yoruba believe that their ancestor was Oduduwa.
1.8 DEFINITION OF TERMS
Facility: Facility can be defined as something that is build, installed or established to serve a particular purpose or something that makes action operational or complement an action.
It is also defined as circumstanced equipment etc that make it possible or easier to do something.
Management: Management according to “Fallet” (2000) define management as the art of getting thing dance through the skills and talent to people, on the other hand, it cant be defined as the art of planning, organizing, leading and controlling the effect of organization members and using all materials recourse to achieve the organizational stated objectives.
Estate surveyor and valuer: According to Kuye (2000), define Estate surveyor and valuer as a person who determine or estimate the monetary worth or value at a specified date and for a specified purpose of the property rights encompassed in ownership.
An estate surveyor and valuer is any person who has under gone a period of training in the filed of estate management or loans economy and has passed the prescribed examination of the Nigeria institution of Estate surveyor and valuers and subsequently registered as fit and proper person to practice the profession of estate surveying and valuation by the estate surveyor and valuers registration board of Nigeria (ESVABON) in accordance with the provision of Decree No 24 of 1975.
Maintenance: This can be defining as the continuous protective case of the fabric contents and selling of a building.
It is one process which helps to conserve a place, in conjunction with other processes such as:
Development: Development means the process of carrying out construction works which are associated with a change in use of land or with its building or with a change in the intensity of the use of land or with the res-establishment of an existing use (Michael 1965).
Value: Value is the power of a commodity to commend other commodities in exchange for it. It can also be defined as presence worth of future benefit (Okoh 2001).
Research: Serious and detailed study of a subject that is aimed at learning new facts scientific laws, testing ideals (Oyefeso 1995).
Estate: Is a large area of land which is owned by a family or an organization. It includes any interest in landed property which gives risk to a measure of control (Kuye 2000).
Land: This can simply be defined as a solid portion of the earth surface. It includes soil, grasses, trees and any other fixed or attach to it (Macmillan Dictionary).
Prominent land uses: This based on used of land for many social activities that is well known and serve as infrastructural facilities of a town (Ebenezer 1983).
Property: Is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation, depending on the nature of the property, an owner of property has the right to consume, sell, rent, mortgage, transfer, exchange of destroy it or be excluded other from doing these things (John locke 2000)..