Construction Raw Material Price Spikes in Tamil Nadu

The cost of construction material has shot through the roof as the prices of various raw material recorded a spike of 15% from projected estimates. Except for M-sand, the cost of most raw material increased, with cement and steel seeing steep escalation. The sharp ris

BY Realty Plus
Published - Thursday, 17 Dec, 2020

Construction Raw Material Price Spikes in Tamil Nadu

The cost of construction material has shot through the roof as the prices of various raw material recorded a spike of 15% from projected estimates. Except for M-sand, the cost of most raw material increased, with cement and steel seeing steep escalation. The sharp rise in price comes at a time when the real estate sector was slowly getting back on track after the impact of the pandemic. While price of 53 grade cement bag (50kg) is up by Rs 90, steel rates have shot up by Rs 22,000 per tonne in the past 18 months. There is also a spurt in the cost of electric cables and plumbing materials such as PVC pipes on an average by 12% and 14%, respectively. This apart, real estate developers in the city said most of them have effected a revision in wages for construction labourers by Rs 100 to Rs 150 per day. All these factors have pushed up the overall construction cost of building a house. Builders Association of India state treasurer S Ramaprabhu said that individuals building their homes will have to shell out 15% more, than initial estimates, as the cost of all raw material has invariably increased. For instance, a person who had planned a house in 1,000 square feet with an estimated construction cost of Rs 20 lakh in March this year will have to pay an additional Rs 3 lakh presently. Builders Association of India national president Mu Mohan said steel prices have increased by Rs 13,000 per tonne in the past four months between September and December. A regulatory authority to regulate the prices of cement and steel on the lines of Telecom Regulatory Authority of India is the need of the hour. S Sridharan , chairman, Confederation of Real Estate Developers’ Association of India (CREDAI) (Tamil Nadu chapter) said substantial price hike of construction material will force developers to put breaks on their ongoing projects.