Building Material Costs - Housing TV Africa

High Material Prices Threaten Housing Affordability and Project Delivery

Innocent Bethel — Wed, 30 Sep 2026 06:01:44 +0000

Rising Building Material Costs Put Fresh Pressure on Nigeria’s Real Estate Market

Rising building material costs are putting increasing pressure on the viability of real estate projects in Nigeria, forcing developers to reassess budgets, pricing and construction strategies as the cost of delivering new housing continues to climb.

The rising cost of construction is affecting one of the most important aspects of the property market, the ability of developers to deliver homes at prices that buyers and tenants can afford.

For developers, the pressure goes beyond the price of building materials. Higher input costs are coming alongside expensive financing, land acquisition, labour, energy, transportation and other development expenses, making it increasingly difficult to maintain the financial viability of projects.

Building materials account for a substantial portion of construction expenditure. As a result, significant changes in the prices of cement, steel, roofing materials, fittings, tiles, glass and other inputs can quickly change the economics of a housing project.

When costs increase after a development has already been planned or launched, developers are faced with difficult decisions.

They may have to absorb some of the additional costs, revise specifications, slow down construction, postpone projects or increase selling prices.

Each option carries implications for project profitability, delivery timelines and the ability of the market to absorb the completed properties.

Affordable housing faces greater pressure

The challenge is particularly significant for projects targeting low- and middle-income households.

Developers operating in this segment have limited room to increase prices because affordability is already one of the major constraints affecting effective demand for housing.

Recent industry reports have similarly linked rising prices of cement, steel, sand, wood and other construction inputs to delays, scaling down and, in some cases, suspension of housing projects.

Cement prices have been particularly important to the cost pressures facing developers.

Recent industry data cited by the Real Estate Developers Association of Nigeria showed that the price of a 50kg bag of cement, which was around N7,500 in the final quarter of 2025, increased to between N9,000 and N10,000 early in 2026 and subsequently reached between N11,500 and N15,000 in several parts of the country.

Other construction materials have also recorded increases.

A recent report by Panterra Real Estate Group found that prices of some key structural and finishing materials had risen by hundreds of percentage points from their 2019 levels, with iron rods and other materials among those experiencing substantial increases.

Developers reassess project viability

The effect of rising material prices is not limited to individual construction inputs.

Developers must account for the combined impact of materials, land, finance, labour, infrastructure and logistics when determining whether a project can be completed profitably.

Industry stakeholders have said this is making it more difficult to predict the final cost of developments, particularly for projects with long construction periods.

A project that appears financially viable at the planning stage can become more expensive to complete if the prices of major inputs rise significantly during construction.

This creates additional uncertainty for developers, particularly when properties have already been marketed or sold at prices based on earlier cost estimates.

Developers may therefore have to review their construction specifications, procurement strategies and project timelines to manage the impact of changing prices.

Impact on homebuyers and tenants

The pressure on developers can eventually affect consumers.

Where developers are unable to absorb higher construction costs, some of the additional expenses may be reflected in the prices of newly completed properties.

This can make homeownership more difficult for households that are already struggling with limited incomes and high financing costs.

The rental market can also be affected because landlords and property investors may seek to recover higher development and maintenance costs through rents.

Recent reporting has linked rising development costs in major Nigerian cities to increases in residential rents, particularly in Lagos and Abuja.

For prospective homeowners, the combination of higher property prices and expensive mortgage financing can further widen the gap between household incomes and the cost of purchasing a home.

Housing supply could also be affected

Another concern is the potential effect of rising construction costs on the volume of housing delivered to the market.

If developers postpone projects or reduce the scale of planned developments because of rising costs, fewer new homes may enter the market.

This is particularly significant for Nigeria, where demand for housing continues to grow as the population expands and more people move into urban centres.

The pressure on supply could become more pronounced if affordable housing projects are disproportionately affected because such projects generally operate within tighter price and profit margins.

Industry stakeholders have therefore continued to call for measures capable of stabilising the building materials market and supporting housing delivery.

Imported materials add to the pressure

The cost of building materials is also influenced by Nigeria’s exposure to imported construction products.

A Panterra report noted that between 60 and 80 per cent of some finishing materials, including tiles, sanitary ware and window fittings, are imported. It linked the price increases to factors including currency depreciation, import exposure and rising production costs.

Changes in foreign exchange conditions can therefore affect the cost of materials and components that developers depend on.

For developers, this can make budgeting more difficult and increase the risk of cost overruns, especially on projects that require imported finishing materials.

Industry calls for intervention

The Real Estate Developers Association of Nigeria has called for greater engagement between government and stakeholders across the building materials value chain to address price instability.

REDAN President, Oba Akintoye Adeoye, has warned that the combined effect of rising construction costs is putting financial pressure on developers and contributing to project delays, scaling down and suspension.

The association has also raised concerns that persistent cost increases could make homeownership more difficult for Nigerians and potentially encourage the use of substandard materials by individuals seeking to reduce construction expenses.

Recent industry reports have similarly called attention to the need for greater local production and measures that can reduce dependence on imported construction inputs.

Real estate sector faces a difficult balance

Nigeria’s real estate sector is therefore facing a difficult balance between rising development costs and the need to keep homes within the reach of buyers and tenants.

Developers must continue to manage land, financing, labour, materials, infrastructure and logistics while responding to changing purchasing power.

For the wider housing market, the challenge extends beyond developers.

Higher construction costs can affect housing supply, property prices, rents, mortgage affordability and the pace at which new developments are delivered.

As Nigeria continues to require more housing, the stability and affordability of construction inputs will remain an important factor in determining how quickly developers can bring new homes to the market.

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FG Sets Up New Task Team to End Building Collapse Crisis

Housing TV Africa News Desk — Thu, 19 Jun 2025 07:11:19 +0000

The Federal Government has taken a major step to stop the growing problem of building collapses in Nigeria. On Wednesday, the Minister of Housing and Urban Development, Arc. Ahmed Dangiwa, launched a stronger task team to handle the issue.

Building collapses have caused deaths, injuries, and destroyed property. According to the minister, this is no longer acceptable. Earlier, the ministry had formed a smaller committee led by Architect Maji Liberty Alkali. That team made 18 suggestions to solve the problem.

Now, the government wants to act fast. So, Dangiwa expanded the team by adding experts from key sectors. These include architects, engineers, builders, town planners, and estate valuers.

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He explained that the main causes of collapse include poor building designs, low-quality materials, weak monitoring, and lack of proper approval. Therefore, teamwork among professionals is crucial to prevent future disasters.

Moreover, the new team will help the government put the recommendations into action. They will also build a roadmap, create a system to monitor building practices, and suggest laws to improve control.

Speaking at the event, the ministry’s Permanent Secretary, Dr. Shuaib Belgore, said the team reflects the government’s serious approach. He added that solving the problem requires input from all sides.

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Govt Moves to Cool Hot Housing Market as Prices Spike

Housing TV Africa News Desk — Fri, 13 Jun 2025 06:43:20 +0000

The government is stepping in to control rising housing costs. It has asked ministries and local agencies to find out what’s causing the sharp increase in property prices and how to fix it.

A recent report shows that the real estate market is not growing in a balanced way. There are too many luxury homes, such as villas, and not enough affordable housing for everyday workers. This makes it hard for many people especially the young and low-income earners—to buy a home.

Officials believe several factors are driving prices up. These include the high cost of land, rising prices of building materials, and steep loan interest rates. Speculators are also playing a big role by buying land just to resell it later at a much higher price. This behavior limits the number of homes being built and pushes prices even higher.

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To solve this, the government has told agencies to take action. They must create plans to reduce construction costs and increase the supply of housing. There will also be stricter rules to stop people from using land auctions to inflate prices.

Planning must match real needs. Authorities should keep enough land for housing and not give it all away for shops or office buildings. The goal is to make homes more available and affordable.

The problem is already clear in the numbers. In the first quarter of the year, some areas saw land and housing prices rise by 20% to 40%. Experts blame this on rising material costs, loan rates, and limited housing supply due to legal delays.

To make the market more transparent, the government is building a digital platform. This platform will handle all parts of real estate deals—from tax payments to land registrations. It will work like a stock exchange and give people clear price data while also reducing fraud and tax evasion.

Officials also plan to make it easier and faster to approve housing projects. They want to cut down the time and cost of paperwork by 30%, so more projects can start sooner.

With these changes, the government hopes to control property prices, stop speculation, and make housing more affordable for everyone.

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FG Set to Build Bamboo Homes for Low, Middle Income Nigerians

Housing TV Africa News Desk — Thu, 12 Jun 2025 05:18:54 +0000

Government Plans New Housing Approach

The federal government will soon start building affordable houses using bamboo. These homes will serve low and middle income earners across Nigeria. The goal is to solve the housing problem in a way that is also good for the environment.

Why Bamboo?

Bamboo grows fast and is easy to replace. It is also strong, flexible, and cheaper than many other building materials. Because of this, it is a good choice for smart, eco-friendly homes.

Ministry Speaks on the Project

Mrs. Esuabana Nko Asanye, Permanent Secretary of the Ministry of Innovation, Science and Technology, shared the plan in Abuja. She said the Nigerian Building and Road Research Institute (NBRRI) will lead the project. NBRRI is a government agency that focuses on building with new and local materials.

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At the event, Mrs. Benadette Oguche, Director of Environmental Science and Technology, spoke on behalf of Mrs. Asanye. She said bamboo homes can be affordable, comfortable, and strong. She also said this project will help Nigeria protect the environment while meeting the needs of its people.

Challenges and Hope

The ministry knows there will be challenges. These include the high cost of starting the project and finding a steady supply of bamboo. But they believe the workshop held in Abuja will help solve some of these problems.

A Greener Future

This plan is part of Nigeria’s larger goal to reduce its carbon footprint. By using bamboo and local building methods, the government wants to set a new standard for housing one that is green, smart, and accessible to everyday Nigerians.

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Cement Prices Surge to N8,800 Amid Soaring Building Material Costs

Housing TV Africa News Desk — Mon, 11 Nov 2024 10:12:18 +0000

The escalating cost of building materials in Nigeria is posing serious challenges to both the property sector and the government’s efforts to promote affordable housing.

Soaring prices, attributed to rising inflation and market instability, have slowed construction across the nation, with many private developers halting projects, and individuals hoping to build homes through direct labor left struggling.

A market survey reveals that the prices of essential building materials have doubled in the past year. Cement, for instance, has surged from N4,000 to N8,800 per bag, while blocks have risen from N250 to up to N600 each. Similarly, the cost of iron rods and paint has doubled, leaving many projects stalled indefinitely as developers and homeowners struggle to manage escalating budgets.

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The economic strain has affected material suppliers, whose capital reserves are shrinking. Retailer Chijoke Ani explained, “My customers are mostly inquiring about prices rather than buying; they’re waiting for costs to drop before continuing their projects.”

This price surge, exacerbated by currency devaluation and energy supply issues, has forced construction firms like that of Nasiru Mohammed to pause operations and renegotiate terms with clients. A civil servant, Joshua Oluwatobi, shared his frustration, explaining that fluctuating prices make it nearly impossible for ordinary Nigerians to afford home construction. “We want the government to intervene; everything from iron rods to cement is now beyond our reach,” Oluwatobi said.

Real estate experts warn that affordable housing in Nigeria may remain unattainable unless substantial policy changes occur. Musa Ibrahim, a developer, emphasized that recent government policies have driven prices up, affecting not only property costs but also rents. “Until there is intervention to stabilize prices, affordable housing will remain a distant dream,” Ibrahim noted.

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The Real Estate Developers Association of Nigeria (REDAN) also highlighted currency depreciation as a core issue, with imported building materials skyrocketing in cost due to the naira’s value drop from N460 to N1,700 per dollar within a year. REDAN’s Vice President, Osilama Osilama, urged policy revisions, including support for local manufacturing to reduce dependency on imports.

Minister of Housing and Urban Development, Ahmed Dangiwa, acknowledged the issue earlier this year, engaging with material producers to address cost concerns. He announced plans to establish regional manufacturing hubs to lower costs by promoting local production. However, the housing deficit remains high, with over 27 million units still needed, reflecting nearly 40% of Africa’s total housing shortfall.

As building costs remain a substantial barrier, Nigerians continue to call for immediate government action to make home ownership a reality rather than an elusive dream.

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