House prices might increase by Rs 450 to Rs 500 per sq ft

CREDAI Aurangabad president Nitin Bagadia demands that the state government pay attention

Aurangabad, March 19:

Prices of construction materials have gone up sharply in the last few days. Prices of cement and steel, which are especially important for construction, have skyrocketed, which could lead to a sharp rise in house prices by Rs 450 to Rs 500 per sq ft in the coming financial year, said architect Nitin Bagadia, president Confederation of Real Estate Developers Association of India (CREDAI) Aurangabad branch. He has demanded the State government to pay serious attention to this matter.

Bagadia said the construction sector has been hit hard by the corona lockdown, with the Russia-Ukraine war now having an indirect impact on the construction sector. In addition, the prices of construction materials have skyrocketed. Steel and cement accounts for 40 per cent of building costs. However, prices of steel, cement and other construction materials have been steadily rising for the last few years.

According to statistics, the price of steel, which was Rs 42,000 per quintal a year ago, has now risen by more than 50 per cent to around Rs 84,900. The price of cement was Rs 260 per bag, it has gone up to Rs 400. The price of a 4 inch brick was Rs 6,500 per thousand pieces, but now Rs 8,000. The price of sand (per brass) has gone up from Rs 6,000 to Rs 8,500 now. The price of wash sand (per brass) has also gone up from Rs 2,800 to Rs 3,800. Along with construction materials, electric wires, fittings, tiles, pipes, sanitary ware, fabrication, murum, minor minerals and most importantly, labour wages have also increased by about 40 per cent.

Bagadia in a letter has requested the State government and the administration to launch an inquiry whether the rise in construction material prices is natural or due to hoarding and profiteering. The State government should take this seriously and give relief to ordinary home buyers. Also, if the prices of construction materials continue to rise, the price of houses will go up by at least Rs 450 to Rs 500 per sq ft in the near future, he hinted.