Chennai real estate is 18 % costlier this year
Sharp rise in cost of material has left individual buyers, with limited savings, in the lurch. While sand prices skyrocketed due to scarcity of the material, retail prices of steel and cement are going through the roof. Sharp rise in cost of material has left individual buyers, with limited savings, in the lurch. While sand prices skyrocketed due to scarcity of the material, retail prices of steel and cement are going through the roof. A bag of Portland Pozzolana Cement (50kg) is sold at ?340 to ?360, depending on the brand. Its price in early 2017 was around ?300. Similarly, the cost of a tonne of 8MM steel sold at ?40,500 earlier, has gone up by ?9,000. MSand rates too have almost doubled in a year’s time after ban on river sand mining. R Veeraraghavan, a builder who is constructing his own house at Virugambakkam, said scarcity of sand and rising cost of construction material was causing financial stress on those dreaming of building a house. “Construction of my house has been delayed by six months. Several people building houses avail loans and they are most hit due to delays,” he added. Developers’ associations charge that the hike is being orchestrated. On the prices of steel, he said local steel manufacturers were fixing international rates for the retail sale in the country. “Steel prices witness a gradual increase of 2% to 5%. Now, this graph is going north of 10% to 15%,” said Ramaprabhu, honorary secretary of the Builders’ Association of India’s Southern Centre. He further said there is no reason why cement prices should soar. “There is a cartel which controls the price of cement,” he alleged.
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