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.
I’ve been absent for some time, but now I remember why I used to love this web site. Thanks , I will try and check back more frequently. How frequently you update your site?
Aw, this was a very nice post. In concept I would like to put in writing like this moreover – taking time and precise effort to make an excellent article… however what can I say… I procrastinate alot and on no account seem to get one thing done.
I have been exploring for a little bit for any high quality articles or blog posts in this kind of house . Exploring in Yahoo I finally stumbled upon this site. Studying this information So i am happy to show that I have a very excellent uncanny feeling I found out just what I needed. I such a lot undoubtedly will make sure to don?¦t overlook this website and provides it a look on a continuing basis.
Thanks , I’ve just been searching for information about this subject for ages and yours is the greatest I’ve discovered till now. But, what about the conclusion? Are you sure about the source?
Really instructive and superb complex body part of articles, now that’s user genial (:.
I really thankful to find this internet site on bing, just what I was looking for : D too saved to fav.
I will immediately grab your rss feed as I can’t find your e-mail subscription link or newsletter service. Do you’ve any? Kindly let me know so that I could subscribe. Thanks.
I believe this site has some very excellent information for everyone : D.
I like this web blog its a master peace ! Glad I detected this on google .
Hi there just wanted to give you a quick heads up and let you know a few of the images aren’t loading properly. I’m not sure why but I think its a linking issue. I’ve tried it in two different web browsers and both show the same results.
Hi, Neat post. There is an issue along with your site in internet explorer, might check this… IE nonetheless is the market chief and a good part of people will miss your fantastic writing due to this problem.
This blog is definitely rather handy since I’m at the moment creating an internet floral website – although I am only starting out therefore it’s really fairly small, nothing like this site. Can link to a few of the posts here as they are quite. Thanks much. Zoey Olsen
Thanks for another informative website. Where else could I get that type of information written in such a perfect way? I have a project that I’m just now working on, and I have been on the look out for such info.
Heya i’m for the primary time here. I found this board and I find It truly useful & it helped me out much. I’m hoping to offer one thing back and help others like you helped me.
side effects doxycycline monohydrate Department of Breast Center, The Affiliated Hospital of Qingdao University, Shandong, China
how to take priligy 6 mk solucin At some level, any insights into entrepreneurial methods that students can gain is helpful, says Alison Wagonfeld, a partner at Emergence Capital and a former case study writer for the Harvard Business School, because it can help change their thinking
You made some decent points there. I looked on the internet for the topic and found most people will go along with with your blog.
Thanks for another informative website. The place else may just I am getting that kind of information written in such an ideal manner? I’ve a challenge that I am simply now operating on, and I’ve been at the glance out for such information.