There is a “steady increase in the rate of construction material” since first lockdown. This has led to an increase in the cost of construction by a minimum of 10% to 15% per square feet. This is expected to increase further.

 

Home buying may get costlier in the coming days, say builders as they may have to finally pass on the increase in cost of construction material to the buyers.

 

This may happen in the fresh bookings of ongoing projects as a number of new plans have been held up due to the rising cost, said local builders at a press conference organized by a branch of Confederation of Real Estate Developers Association of India (CREDAI).

 

The costs of building material across the board have gone up since lockdown, they said.

 

CREDAI Nagpur president said there had been a “steady increase in the rate of construction material” since lockdown. Future buyers may have to bear the increased cost, as a 10-15% rise in the selling price can be expected across projects.

 

CREADI Nagpur members stated that rates of steel that were at Rs.40,000 a ton had reached Rs.60,000 since January. A bag of cement that cost Rs.280 is now up by Rs.100 to Rs.150/-. They added, “the rates of PVC pipes have gone up by Rs.500. As against Rs.950-1,000 a unit, the pipes now cost Rs.1,400-1,500. There has been an increase in the rates of sand and a host of sundry items too. Big jump in wages is also expected due to labour scarcity. A pair of skilled and unskilled workers like a mason and helper has gone up by Rs 1,000-1,100, builders claimed.

 

Source: realty.economictimes.indiatimes.com