Surging steel prices may make houses costlier, say builders

11 Apr 2022 CW Team

According to the builders, the increasing construction costs due to the Ukraine war may shortly leave houses costlier.

The Nagpur unit of the Confederation of Real Estate Developers of India (CREDAI) has additionally sought government intervention in the issue.

CREDAI has demanded a government investigation to find out whether the cost increase is because of cartelisation in the steel sector.

Builders, however, additionally attribute it to the war in Ukraine. The conflict has added to the increase in costs of construction material, particularly steel, apart from plastics and other alloys that go into building real estate, they say.

The builders claim that it may eventually lead to a surge of 20% to 30% in the selling price of real estate in new projects.

A note shared by CREDAI says costs of steel have doubled to Rs 84,000 a tonne since a year. A cement bag presently costs Rs 400 a bag. The two components make up 40% of the total construction price. Bricks, which cost Rs 6,500 per thousand are presently Rs 8,000. Cost of other items such as wires, fittings, aluminium and even wages have increased by 40%.

Gaurav Agrawala, secretary of CREDAI, told the media that from the earlier base level of Rs 1,800 per sq ft, the construction price might easily cross Rs 2,100, and in premium projects, it would go to Rs 2,500 sq ft. It may lead to an increase of Rs 300 per sq ft in sale cost too.

Agarwala told the media that he plans to increase rates of unsold units at one of his projects at Lakadganj to fulfil the increased cost. In October-November 2021, diesel costs influenced the sale cost, which increased by Rs 100 to 150 sq ft.

He said that the war has led to a significant increase in the cost of coking coal, which is used in steel making. Even costs of iron ore, the raw steel material, have increased.

Image Source

Also read: CREDAI to increase flats prices by 10-15% from April 1 in Rajasthan

According to the builders, the increasing construction costs due to the Ukraine war may shortly leave houses costlier. The Nagpur unit of the Confederation of Real Estate Developers of India (CREDAI) has additionally sought government intervention in the issue. CREDAI has demanded a government investigation to find out whether the cost increase is because of cartelisation in the steel sector. Builders, however, additionally attribute it to the war in Ukraine. The conflict has added to the increase in costs of construction material, particularly steel, apart from plastics and other alloys that go into building real estate, they say. The builders claim that it may eventually lead to a surge of 20% to 30% in the selling price of real estate in new projects. A note shared by CREDAI says costs of steel have doubled to Rs 84,000 a tonne since a year. A cement bag presently costs Rs 400 a bag. The two components make up 40% of the total construction price. Bricks, which cost Rs 6,500 per thousand are presently Rs 8,000. Cost of other items such as wires, fittings, aluminium and even wages have increased by 40%. Gaurav Agrawala, secretary of CREDAI, told the media that from the earlier base level of Rs 1,800 per sq ft, the construction price might easily cross Rs 2,100, and in premium projects, it would go to Rs 2,500 sq ft. It may lead to an increase of Rs 300 per sq ft in sale cost too. Agarwala told the media that he plans to increase rates of unsold units at one of his projects at Lakadganj to fulfil the increased cost. In October-November 2021, diesel costs influenced the sale cost, which increased by Rs 100 to 150 sq ft. He said that the war has led to a significant increase in the cost of coking coal, which is used in steel making. Even costs of iron ore, the raw steel material, have increased. Image Source Also read: CREDAI to increase flats prices by 10-15% from April 1 in Rajasthan

Infrastructure Transport

30 Oct 2024

Railway stations in Prayagraj undergo major passenger facility expansion

The Railway Board Chairman and CEO, Satish Kumar, conducted an extensive inspection on Saturday alongside the General Manager of Northern Railway and the officiating General Manager of North Central Railway. Their visit focused on various ongoing projects at multiple stations across the Northern and North Central Railway zones, with particular attention to enhancing facilities for the upcoming Maha Kumbh. During the inspection, Chairman Kumar reviewed the construction of a vital bridge over the River Ganga, specifically between Jhunsi and Prayagraj Rambagh. This bridge is expected to significa..

Infrastructure Transport

30 Oct 2024

Madurai-Thoothukudi broad gauge line works under review

The construction of the Madurai-Thoothukudi broad gauge line, which includes the crucial Melmarudur-Tiruparankundram project, is currently under careful review. This update comes from Southern Railway's assistant public information officer, J Kumarasubramanian, following an RTI inquiry made by a concerned citizen, Dayanand Krishnan. The new broad gauge line is projected to cover a total length of 143.5 km, with the initial 18 km stretch between Milavittan and Melmarudur completed and sanctioned by the Commission of Railway Safety on March 8, 2022. While substantial progress has been made on t..

Real Estate

30 Oct 2024

DLF expects Rs 26,000 cr from super luxury project in Gurugram

Realty giant DLF is projecting impressive revenue of Rs 26,000 crore from its newly unveiled super-luxury project, The Dahlias, situated in the heart of Gurugram. Ashok Tyagi, the Managing Director of DLF, shared these insights during a recent conference call with market analysts, highlighting the project's potential amidst rising demand for high-end residential properties. The Dahlias project spans an expansive 17 acres and is set to feature approximately 420 ultra-luxury apartments, each boasting a minimum size of 10,300 square feet. This ambitious development has already garnered significan..

Surging steel prices may make houses costlier, say builders

Railway stations in Prayagraj undergo major passenger facility expansion

Madurai-Thoothukudi broad gauge line works under review

DLF expects Rs 26,000 cr from super luxury project in Gurugram

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Live Results :

Virtual Reality and 3D Property Tours

Smart Home and Building Automation

Blockchain for Property Transactions

Big Data and Predictive Analytics for Market Insights

Augmented Reality for Property Staging and Design

Drone Technology for Aerial Photography and Site Analysis

Latest updates

Railway stations in Prayagraj undergo major passenger facility expansion

Madurai-Thoothukudi broad gauge line works under review

DLF expects Rs 26,000 cr from super luxury project in Gurugram

Vilappilsala mini-township project likely to be scrapped

Jaipur Development Body to expand by 1,000 sq km

State Cabinet approves Hyderabad Metro Rail phase-2 project

Focus on metro networks promoting equitable urban mobility

Delhi Metro awards maintenance contract to Beumer India

Follow us on

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address

Surging steel prices may make houses costlier, say builders

Railway stations in Prayagraj undergo major passenger facility expansion

Madurai-Thoothukudi broad gauge line works under review

DLF expects Rs 26,000 cr from super luxury project in Gurugram

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Live Results :

Virtual Reality and 3D Property Tours

Smart Home and Building Automation

Blockchain for Property Transactions

Big Data and Predictive Analytics for Market Insights

Augmented Reality for Property Staging and Design

Drone Technology for Aerial Photography and Site Analysis

Latest updates

Follow us on

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address