Building Material Rising Cost: Analyzing the Rising Construction Material Costs on Real Estate Development Activities in Enugu Metropolis, Enugu State (2021 - 2025)

Abstract

This study examined the effect of rising building-material costs on property development activities in Enugu Metropolis, Enugu State, Nigeria. The study adopted a descriptive and correlational research design, using questionnaires to obtain data from key stakeholders in the property and construction sectors. A sample of 339 respondents was determined from a population of 2,203 using Yamane’s formula and stratified random sampling. Of the 339 questionnaires distributed, 238 were validly retrieved, representing 70% response rate. Data were analysed using frequency distributions, percentages, mean scores and Spearman’s rank-order correlation. Findings revealed that transportation costs constituted the most prominent factor responsible for rising building-material prices (MS = 4.8), followed by inflation (MS = 4.4), manufacturing costs (MS = 4.0), exchange-rate fluctuations (MS = 3.8), and government policies and regulations (MS = 3.7). Improved transportation infrastructure (MS = 4.8) and reduced import duties (MS = 4.7) were identified as the most preferred measures for reducing material costs, while stricter price controls ranked lowest (MS = 3.1). Furthermore, 84% of respondents reported a decline in property development activities, with 37% estimating the reduction at 41–60%. Spearman’s correlation revealed a strong, positive and statistically significant association between perceived impact of rising material costs and the magnitude of decline in property development activities (r_s = 0.780, p < 0.001, N = 238). The study concludes that escalating building-material costs constitute a significant constraint on property development in Enugu Metropolis. It recommends integrated interventions focusing on transport infrastructure, domestic production, import policies, alternative materials, development finance and regulatory predictability to improve development resilience and housing supply.