CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
One of the key financial worries of long-term investors is the impact of inflation on asset values. While actual and predicted inflation has decreased significantly since the early 1980s, long-term investors are nonetheless concerned about future increases. According to Ibbotson and Siegael (1995), real estate protects investors from inflation risk. When real estate is added to a mixed-asset portfolio, the expanded portfolio’s inflation risk is significantly lower than the original portfolio’s (expanded real estate). The popular belief has been that low or no rise in property values has occurred in recent years, as the incidence of inflation has fallen to low levels and property markets have remained relatively steady.
Clients, contractors, consultants, stakeholders, shareholders, regulators, and others are among the many people who work in the construction industry. Because of a variety of reasons and factors, construction projects in Nigeria face numerous issues and complex performance issues. This study was crucial in determining the most important factors influencing construction project performance. The practices relating to KPIs such as time, cost, quality, and leadership styles were examined in order to identify the main practical issues with project performance in Nigeria, and recommendations were then made to improve project performance in Nigeria.
Because of the previously mentioned performance issues in Nigeria, as well as the fact that previous studies on this subject in Nairobi CBD did not cover all aspects of construction project performance, this study was necessary.
STATEMENT OF PROBLEM
Inflation is one of the issues that any urban area in the world faces when it comes to property values. The first is through increasing costs: higher construction labor wages, higher material costs, and higher land prices. When new and old house prices are compared, new houses are on average more expensive than old houses, and the price difference is largely due to greater construction labor and material expenses.
Inflation has had an impact on rental property values. A well-known American economist, Irving Fisher (1998), proposed a theory on the relationship between interest rates and inflation rates, which can be applied to housing market rents.
AIM AND OBJECTIVES OF THE STUDY
The purpose of this study is to look at how inflation affects property values in Ilorin, Kwara State. To this end, the research will concentrate on the following specific goals:
1. To identify the different types of properties in the study area
2.To determine the different types of inflation and its causes.
3. The purpose of this study is to look into the effects of inflation on property values.
4. To make suggestions for possible remedies to the situation.
RESEARCH QUESTIONS
In order to have a comprehensive understanding of the influence of inflation on property values in the research region. The following issues must be addressed properly:
1.What kinds of properties are there in the research area?
2.What are the different types of inflation and what causes them?
2. What effect does inflation have on property values?
SCOPE OF THE STUDY
A study of the influence of inflation on rental values that will include all aspects of the effect, as well as the solutions and strategies used to mitigate the impact on the population in the study area. It will include a wide spectrum of residential, commercial, and industrial buildings.
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