Cement, Bricks and Steel Price Hike to Have Punitive Impacts on Realty Sector

March 16: With an all-time price hike in steel, cement and bricks including other miscellaneous materials soaring significantly at an unexpected pace, the overall cost of construction is seeing a surge of almost 40 per cent. Such a steep rise in the raw materials will eventually up the ante on the price of all forms of real estate. Consequently, customers are supposed to be bearing the cost due to prices going forward at an extraordinary scale.

What’s more, the rising prices of building materials have succumbed the realty companies’ profit margin to the pressure. This can lead to a challenging time for project development as well as compelling realtors to increase price thereby putting customers in a tight corner.  No doubt, builders are concerned about their prospects too, as they might have to shoulder an extra Rs. 5 to Rs.10 lakh per unit whenever the price hike to be bourne by them with regards to RERA rules.

According to an industry expert, Mr. Gangan Goswami, Managing Director of Heritage Infraspace (india) Pvt. Ltd who has been leading the foundation works for 27 years like diaphragm wall works, piling works and civil construction among others, construction materials such as electric cables, PVC pipes, sand, steel, cement, bricks etc. have gone up between 20% to 40%. Add to more, depending upon the brand, the rates of these materials do differ. A bag of cement which was sold between Rs. 270 to Rs. 290 has shot up to roughly about Rs. 350. Steel prices have also seen extraordinary rise from Rs. 45000 per ton to eye-wateringly Rs.75000. On top of this, rising fuel prices have added fuel to the fire resulting in an increased cost of transportation. This will directly hit the developers while leaving a profound price-related impact on the customers.
He further added, “We have been witnessing a consistently sharp increase in the raw materials’ cost over the last one year and unfortunately, it does not seem to get stable. The price hike of cement, steel and bricks including other materials will certainly force the construction industry to increase approximately Rs.1000 or more for buildings which will adversely affect the customers. Hopefully, we expect CREDAI or other industry bodies to deliberate over the input cost of project development and request the concerned authority to come up with a mutually-feasible solution.”

With such a hike in price, the new projects shall definitely see enhanced prices whereas the launched -projects might decide on the price segment within a year. Needless to say, the realty sector has strong connections with the core sectors of the economy. Any fluctuation in the realty sector makes severe repercussions on more than many sectors including financial sectors. In such a scenario, the cost of raw materials ought to remain on a par with the comprehensive revival of real estate activities.

22 thoughts on “Recurring Hike in the Price of Raw Materials Set to Make Adverse Repercussions both on Developers and Customers”
  1. Do you have a spam issue on this blog; I also am a blogger, and I was curious
    about your situation; many of us have developed some nice
    methods and we are looking to swap solutions with other folks, be sure to shoot me an e-mail if interested.

  2. Pretty component to content. I simply stumbled upon your blog and in accession capital to assert that I
    get actually enjoyed account your weblog posts. Anyway I will be subscribing on your feeds and even I fulfillment you get entry to persistently fast.

  3. I absolutely love your website.. Great colors & theme.
    Did you build this amazing site yourself? Please reply back as I’m
    wanting to create my own personal site and would like to learn where
    you got this from or exactly what the theme is called. Appreciate it!

  4. I was recommended this web site by my cousin. I am
    not sure whether this post is written by him as nobody else know such detailed about my difficulty.
    You are wonderful! Thanks!

  5. Fantastic post however , I was wanting to know if you could write a litte more on this topic?
    I’d be very grateful if you could elaborate a little bit more.
    Bless you!

  6. Do you mind if I quote a few of your posts as long as I provide credit and sources back
    to your site? My website is in the exact same area of interest as yours and my visitors would really benefit from
    some of the information you provide here. Please let me know if this ok with you.

  7. 380792 672074Oh my goodness! a fantastic write-up dude. Thanks a whole lot Nonetheless We are experiencing trouble with ur rss . Do not know why Not able to sign up to it. Perhaps there is anybody obtaining identical rss problem? Anyone who knows kindly respond. Thnkx 307282

  8. Hi! Do you know if they make any plugins to protect against hackers?
    I’m kinda paranoid about losing everything I’ve worked hard on. Any tips?

  9. I’m not sure exactly why but this blog is loading incredibly slow for me.
    Is anyone else having this problem or is it a problem on my end?
    I’ll check back later and see if the problem still exists.

  10. I simply couldn’t leave your website before suggesting
    that I really loved the usual information an individual supply on your guests?
    Is gonna be back incessantly to check out new posts

  11. You’ve made some decent points there. I looked on the internet to find out more about the issue and found most individuals will go
    along with your views on this site.

  12. This is very interesting, You’re a very skilled blogger.
    I’ve joined your feed and look forward to seeking more of your wonderful post.

    Also, I have shared your site in my social networks!

  13. Hello just wanted to give you a quick heads up.
    The text in your post seem to be running off
    the screen in Safari. I’m not sure if this is a format issue or something to do with web browser
    compatibility but I figured I’d post to let you know.
    The design look great though! Hope you get the problem resolved soon. Many

    Here is my web site: 2022

  14. 398751 67459There exist a couple of numerous different distinct levels among the California Weight loss program and each and every a person is pretty critical. Youre procedure stands out as the the actual giving up with all of the power. weight loss 153351

  15. 377692 874789great post, quite informative. I wonder why the other experts of this sector do not notice this. You ought to continue your writing. Im positive, youve a terrific readers base already! 19188

  16. 43405 614131 An intriguing discussion is worth comment. I think that you really should write much more on this topic, it may not be a taboo subject but normally people are not enough to speak on such topics. Towards the next. Cheers 548046

  17. 169547 686490For anybody who is considering about external complications, sometimes be tough amaze those to realize to produce just a single weed in this really flowing usually requires eleven liters concerning gasoline to. dc free of charge mommy blog giveaways family trip home gardening residence power wash baby laundry detergent 537426

Leave a Reply

Your email address will not be published.