EFFECT OF RISE IN THE COSTS OF BUILDING MATERIALS ON PROPERTY DEVELOPMENT IN BAUCHI METROPOLIS

Abstract

The real estate sector is a critical component of any economy, significantly contributing to economic growth and development. In Bauchi Metropolis, the development of property has faced numerous challenges, one of the most significant being the high cost of building materials. This phenomenon affects not only the cost of construction but also the overall affordability and accessibility of housing and commercial properties. Most literature had concentrated on identifying the causes with little emphasis on the effect; hence, this paper seeks to provide information on effect of the rising cost of building materials on property. A Quantitative research approach was adopted for this paper, this design allows for a comprehensive analysis of the current state of property development and the impact of rise in building material costs. The population used in the conduct of the research includes property developers, investors, construction companies, and relevant stakeholders in Bauchi Metropolis, the sample frame of 200 was taken and a sample size of 100 respondents were selected using stratified random sampling technique to ensure that all relevant subgroups within the population were adequately represented, descriptive and inferential statistical method was used in analyzing data for this research. The finding of this research showed that high cost of building materials significantly hampers property development in Bauchi Metropolis. The increase in prices for essential materials such as cement, iron rods, and roofing sheets has driven up construction costs, delayed projects, and led developers to opt for simpler and more cost-effective designs. Building materials affected by price increase include cement which rank 1^st, followed by iron rods 2^nd, roofing sheet 3^rd, paints 3^rd, tiles 4^th. The findings further indicated that inflation, high import duties, and transportation costs are major factors behind the rising cost of materials. Property developers are increasingly facing financial burdens, project delays, and challenges in maintaining profitability due to these rising costs. The paper recommends as follows: encouraging local production, strengthening infrastructure, regulating material prices, promoting affordable housing, policy consistency and implementation, Public-Private Partnerships (PPPs).