Rising cost of cement, steel push up construction cost up by 40%
The Hindu
According to information, the steel cost has increased from ₹46,000 to ₹48,000 per tonne to ₹69,000 to ₹72,000 per tonne.
The cost of construction has increased by 35-40% due to steep rise in prices of raw materials such as cement, steel and sand in Andhra Pradesh. The builders have crossed their fingers as they would have to shoulder ₹5 lakh to ₹10 lakh per unit if the cost escalation were to be borne by them in view of the RERA rules.
According to information, the steel cost has increased from ₹46,000 to ₹48,000 per tonne to ₹69,000 to ₹72,000 per tonne. The “sand is not available at a price not less than” ₹1,100 per tonne. Similarly, the cost of cement too shot up. The cement used to cost ₹280 to ₹300 per bag depending upon the quality and brand. Now, it costs ₹400 to ₹450 per bag. The costs of other fixtures such as electricity, plumbing and tiles have also increased. As a result, the cost per square foot (sft) has gone up to ₹4,500 to ₹5,500. It was about ₹3,500 per sft a few months ago, sources in the construction industry say.
When contacted, the Confederation of Real Estate Developers Associations of India (CREDAI) Convenor (Public Relations and Media Affairs Committee) R.V. Swamy says that the cost of construction of a unit has gone up by about 40%. Earlier, a flat used to cost ₹40 lakh depending upon the factors such as square feet, area etc. Now, the builder has to sell a flat at ₹45 lakh to ₹50 lakh if the rise in prices of raw materials were to be taken into account, he explains.