Huge increase in construction costs makes buying new home costlier

Aurangabad, Oct 27 -

Prices of basic materials required for the construction sector such as steel, cement, aluminium, plumbing materials, lobour and transportation costs are increasing daily. The increase in construction costs will have a direct impact the prices of new homes.

Confederation of Real Estate Developers Associations of India (CREDAI) Aurangabad president Architect Nitin Bagadiya and secretary Akhil Khanna said that the construction sector is known in the country as a major contributor to GDP and the largest employer. Also one of the basic needs I.e shelter is fulfilled by the construction sector. The construction sector is also recognised as an important factor in economic development. Corona , lockdown, migration of construction workers, as well as rising prices of fuel, steel and cement are all having an adverse effect on construction costs. The prices have increased by Rs 300 to Rs 400 per square foot, said Bagadiya.

Cement, steel gets costlier

Cement prices have increased from Rs 275 to Rs 280 per bag to Rs 350 to 410, steel prices from Rs 40 to 45 per kg to Rs 60 to 70 per kg, aluminium 35 to 45 per cent, plumbing material from 40 to 55 per cent, diesel from Rs 60 to Rs 102 per litre and tiles by 20 to 30 per cent.

Detrimental effect on housing projects

The hike is having a detrimental effect on housing projects, which is likely to lead to a huge increase in the cost of affordable housing projects. Therefore, the dream of ordinary citizens to buy a house is likely to remain unfulfilled. Credai has requested the state and Central governments to take immediate action to curb the rising prices of construction materials in the interest of the general public.