Modeling the Effect of Changes in the Price of Construction Materials on the Rate of Development in Abuja

Abstract

The ever increasing cost of building construction materials in Nigeria has been a major source of concern to all the stakeholders in industry because of its overarching effects on infrastructure development. Globally, persistent rise in the price of materials has been reported to have consequential effects on sustainable development. This study, therefore, determines to analyze the effects of an increase in the prices of construction materials on the rate of development in Abuja. In order to achieve this, data were sourced qualitatively and quantitatively from Abuja using archival data, personal observations and Geospatial techniques which involve the use of Remote Sensing and Geographical Information System (GIS) to determine the rate of development over the years. Some selected building materials were examined and compared with the rate of development. The growth rate for the period of study was based on built-up area per square meter. The data were analyzed using both descriptive and inferential statistical analysis, to determine the relationship between the increases in prices of selected materials on the rate of development. The result of the research has shown that changes in the prices of building materials have effect on the rate of development explaining an average 85% in the variation explained by the models. The changes in the built-up area and vegetation between 1990 and 2014 were found to be significantly high. The research has indicated that a reduction in the prices of building materials will lead to a significant reduction in the cost of housing projects in order to improve housing affordability and sustainability. The study is expected to contribute largely to currently discuss and vision of Nigeria in achieving sustainable urban development. It will also be of benefit to all the stakeholders in understanding the essence of achieving sustainable growth through an effective price control mechanism.