{"id":1169,"date":"2017-02-23T09:16:45","date_gmt":"2017-02-23T09:16:45","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/?p=1169"},"modified":"2020-10-18T12:14:52","modified_gmt":"2020-10-18T12:14:52","slug":"developers-firms-in-dilemma-over-rising-building-materials-cost","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/developers-firms-in-dilemma-over-rising-building-materials-cost\/","title":{"rendered":"Developers, firms in dilemma over rising building materials\u2019 cost"},"content":{"rendered":"

 <\/p>\n

\n

\"Developers\"<\/p>\n

Efforts at improving the nation\u2019s construction industry for the past few years may have suffered a setback, as property developers have recently seen an increase in the cost of materials shoot up building projects prices.<\/h2>\n

Efforts at improving the nation\u2019s construction industry for the past few years may have suffered a setback, as property developers<\/strong> have recently seen an increase in the cost of materials shoot up building projects prices.<\/p>\n

Building firms and professionals currently witnessing slow transactions in the real estate<\/a> sector are now grappling with a 150 per cent rise in material prices caused by the depreciation of the naira and high exchange rates, according to an investigation by The Guardian.<\/p>\n

Nearly 80 per cent of all materials used by the Nigeria\u2019s construction industry are imported and costs are expected to increase further as the exchange rate now\u00a0stands\u00a0at N506 to a dollar.\u00a0Experts are warning of dire consequences in the construction industry, if imports of building materials are left\u00a0entirely to the\u00a0vagaries\u00a0of free\u00a0market forces.<\/p>\n

Similarly, local manufacturers of building materials such as cement, tiles<\/a>, paints and iron rods have also increased prices of their products due to\u00a0shortages of industrial fuel such as low pour fuel (LPFO), automotive gas oil (AGO) and natural gas.<\/p>\n

There are fears that as building works get more expensive, homeowners may have to compromise on aspects of their project if some materials become too pricey \u2013 the cost of cement has already increased by 200 per cent,\u00a0iron rods by 120 per cent\u00a0and timber is up by 20 per cent. Prices of imported finishing products such as tiles, roofing sheets<\/a>, sanitary wares and doors have also hit the roof.<\/p>\n

For instance, cement price, which increased from N1500 to N2,350, has now gone up to N2,600 in Lagos area;\u00a0the cost of rod has skyrocketed from N170, 000 per ton to N300, 000 and<\/p>\n

The scenario has worsened government\u2019s projections to reduce the nation\u2019s housing<\/a> deficits, providing affordable housing<\/a> to the teeming population and encouraging homeownership through site and services schemes. Housing schemes by government agencies are now beyond the reach of average Nigerians.<\/p>\n

Experts say, government must put in place policies that will lower materials costs.\u00a0\u00a0President, Nigerian Institute of Quantity Surveyors (NIQS), Mrs. Mercy Iyortyer who confirmed the development, noted that uncontrollable increase in the prices of construction materials<\/a> is a big challenge on project estimates in recent times; resulting in constant upward variations of construction costs and high costs of new projects.<\/p>\n

As quantity surveyors continue to add value to clients by closely monitoring these increase and giving professional advise, Iyortyer called on government to urgently put in place policies that will lower and stabilize construction material prices to save the industry.<\/p>\n

Also, President, Nigerian Institute of Building (NIOB), Tijani Shuaib said the high cost of building materials\u00a0has reduced the purchasing power of the prospective\u00a0clients, who patronize them as\u00a0estate developers.<\/p>\n

Shuaib, who is an estate developers said: \u201cFor example, the cost of rod has skyrocketed from N170, 000 per ton to N300000, thereby making the price out of reach to people. The high interest rate from mortgage<\/a> is also a factor that even when the houses<\/a> are built, you cannot find buyers.<\/p>\n

For majority of their members, who are civil servants and constitute 70 per cent of NIOB members, he said the increase is already impacting negatively on government owners occupier house scheme, which many leverage to own their homes. Many of them, he said, are backing out because they cannot pay the increase with the remaining number of service years.<\/p>\n

President, Nigerian Institution of Structural Engineers\u00a0(NIStructE), Oreoluwa Fadayomi,\u00a0said the high cost of building\u00a0materials has impacted severely on\u00a0projects that\u00a0many\u00a0projects are\u00a0now\u00a0stalled and clients could no longer continue as a\u00a0result of high cost of all the\u00a0building materials.<\/p>\n

In\u00a0some case where reinforcement is required the budget keep\u00a0increasing on weekly basis that many\u00a0developers decided to stop.\u00a0The resultant effect of this, he said\u00a0in ability to meet contractual\u00a0agreements in terms of repayment of credit facilities and payment of\u00a0salaries.<\/p>\n

\u201cAnother dangerous trend is that many developers and engineers have resulted to cutting corners to ensure that they remain in business in\u00a0order to feed their families and make ends meet.\u00a0The resultant effect is that\u00a0proposed materials\u00a0may not meet\u00a0specified standards\u00a0due to high cost.\u201d<\/p>\n

He cited instances, if you need 3O bags of cement to mix certain measurement\u00a0of gravel, you may need to reduce\u00a0to 15 bags in ensuring that projects are\u00a0not abandoned.<\/p>\n

The Executive Secretary, Paint<\/a> Manufacturers Association of Nigeria, Mr. Jude Maduka revealed that there is general rise in the prices of everything in the market due to the dollar situation and coupled with the fact that majority of the raw materials used in manufacturing paints are imported and so for the manufacturers remain in business, they have to increase price marginally.<\/p>\n

\u201cPrices of things are increasing and paints should not be left out. Our members are increasing prices but not to the extent of other items.\u00a0 Prices of raw materials have increased to over 100 per cent and we don\u2019t have option that to increase prices marginally too, in order to have some profit. We must also understand that the things that goes into paint production are also many\u201d, he stated.<\/p>\n

\u201c A tonne of titanium used to be N750, 000 before but is now N1.8million, which is over 140per cent rise in price. The tonne of the additives used to be N2, 000,000 before but is now N4.5million. Calcium carbonate that is produced locally which used to be N30.00 per kilogram is now N200.00.<\/p>\n

A leading building materials manufacturer, Afam Mallinson Ukatu, who is also the managing director of Mallinson and Partners Limited said: \u201cNigeria remains the only country where natural gas are charged in dollars for local manufacturers. With the current charge on natural gas it is difficult to manufacture goods in the country.<\/p>\n

\u201cWe have been clamouring that local manufacturers be charged in local currency to reduce cost of production. It is taking many of us away from business. That is the main cause of the high cost of building materials in the country.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

  Efforts at improving the nation\u2019s construction industry for the past few years may have suffered … Developers, firms in dilemma over rising building materials\u2019 cost<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":1170,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[4751,208,1403,220,203,2890,1398,1399,3124,205,201,211,12908,543,215,627,127,617,217,207,202,209,489,344,684,206,408,204,522,1007,41,218,3126,84,221,210,200,216,212,857,213,214,219,12,15307],"class_list":["post-1169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-amazing","tag-best-real-estate-websites","tag-buy","tag-cheap-houses-for-sale","tag-condos-for-sale","tag-construction","tag-developers","tag-development","tag-engineers","tag-estate-agent","tag-flats-for-sale","tag-foreclosure-homes-for-sale","tag-home","tag-home-buying-guide","tag-home-sale","tag-homeowners","tag-homes","tag-house","tag-house-listings","tag-house-sale","tag-house-sales","tag-house-search","tag-houses","tag-housing","tag-lagos","tag-mansions-for-sale","tag-mortgage","tag-new-homes","tag-nigeria","tag-owners","tag-property","tag-property-agent","tag-property-developers","tag-real-estate","tag-real-estate-agencies","tag-real-estate-agency","tag-real-estate-broker","tag-real-estate-company","tag-real-estate-search","tag-real-estate-sector","tag-real-estate-sites","tag-real-estates","tag-realty","tag-surveyor","tag-ulta"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/building-materials.jpg?fit=1280%2C720&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":10298,"url":"https:\/\/amazingproperty.com.ng\/blog\/cheap-real-estate-property-near-me-to-buy\/","url_meta":{"origin":1169,"position":0},"title":"Cheap Real estate property near me to buy ?","author":"Amazing Property","date":"July 31, 2020","format":false,"excerpt":"When looking to buy a home what comes to mind is how to find\u00a0 cheap Real estate property near me to buy . You see signs of real estate for sale, you always think of how you can be the one to purchase such real estate for sale.\u00a0 In this\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"property near me to buy","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2019\/10\/d6299dc5660e193fcf34750152a2751c-3.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2019\/10\/d6299dc5660e193fcf34750152a2751c-3.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2019\/10\/d6299dc5660e193fcf34750152a2751c-3.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":13188,"url":"https:\/\/amazingproperty.com.ng\/blog\/what-documents-do-you-need-for-a-rental-application\/","url_meta":{"origin":1169,"position":1},"title":"What documents do you need for a rental application in Australia ?","author":"Amazing Property","date":"November 21, 2022","format":false,"excerpt":"\u00a0 What documents do you need for rental application ? The documents typically required include the following . in an application crucial. But what documents are needed for a rental application? And why are they so important? In some parts of Australia right now, there\u2019s fierce competition for rental properties\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"documents","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2021\/08\/a8ea33d6c581baf84963897d4021ef9c.jpg?fit=640%2C426&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2021\/08\/a8ea33d6c581baf84963897d4021ef9c.jpg?fit=640%2C426&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2021\/08\/a8ea33d6c581baf84963897d4021ef9c.jpg?fit=640%2C426&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":8975,"url":"https:\/\/amazingproperty.com.ng\/blog\/7-questions-to-ask-before-signing-a-lease\/","url_meta":{"origin":1169,"position":2},"title":"7 questions to ask before signing a lease","author":"Amazing Property","date":"December 13, 2018","format":false,"excerpt":"Renting a house is a great a way to live affordably and it\u2019s even better if you split the costs with a few housemates. However it\u2019s important to ask the right questions before signing a lease. Renting houses takes practice and can often mean learning from costly mistakes. Avoid\u00a0falling into\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Couple Ouside Rent.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/12\/couple-ouside_rent.jpg?fit=1200%2C900&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/12\/couple-ouside_rent.jpg?fit=1200%2C900&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/12\/couple-ouside_rent.jpg?fit=1200%2C900&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/12\/couple-ouside_rent.jpg?fit=1200%2C900&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/12\/couple-ouside_rent.jpg?fit=1200%2C900&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":11023,"url":"https:\/\/amazingproperty.com.ng\/blog\/choosing-a-real-estate-agent-to-sell-your-house\/","url_meta":{"origin":1169,"position":3},"title":"Choosing a real estate agent to sell your house","author":"Amazing Property","date":"December 10, 2020","format":false,"excerpt":"Did you know that choosing a real estate agent to sell your house matters a lot ? Having the right real estate agent can make the difference between selling your home for a great price or just making your reserve. Research and local knowledge are crucial to getting the best\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9293,"url":"https:\/\/amazingproperty.com.ng\/blog\/demand-for-nigerias-luxury-real-estate-dips\/","url_meta":{"origin":1169,"position":4},"title":"Demand for Nigeria\u2019s luxury real estate dips","author":"Amazing Property","date":"August 31, 2019","format":false,"excerpt":"Real estate The Nigeria\u2019s luxury real estate market has taken a beating lately due to several fundamentals, which include stricter government regulations and economic factors. Developers\u2019 over-exuberance and government crackdowns to check money laundry in the real estate sector combined to end the selling frenzy and leave developers, lenders and\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Real estate news","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/04\/Real-Estate1.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/04\/Real-Estate1.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/04\/Real-Estate1.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/04\/Real-Estate1.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/04\/Real-Estate1.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":8053,"url":"https:\/\/amazingproperty.com.ng\/blog\/how-long-does-it-take-to-sell-a-house\/","url_meta":{"origin":1169,"position":5},"title":"How long does it take to sell a house?","author":"Amazing Property","date":"February 7, 2018","format":false,"excerpt":"\u00a0 It seems everyone has a theory about how long it takes to sell a house, but what\u2019s the reality? Angus Graham, from Hodges Sandringham in Melbourne, lays out the facts: \u201cOn average in Australia, it takes about 30 days from when you take the photos of your home until\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Contemporary Melbourne House 800x600.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/contemporary-melbourne-house_800x600.jpg?fit=870%2C652&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/contemporary-melbourne-house_800x600.jpg?fit=870%2C652&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/contemporary-melbourne-house_800x600.jpg?fit=870%2C652&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/contemporary-melbourne-house_800x600.jpg?fit=870%2C652&ssl=1&resize=700%2C400 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/1169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=1169"}],"version-history":[{"count":0,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/1169\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media\/1170"}],"wp:attachment":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=1169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=1169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=1169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}