Construction cost might go up since April

Aurangabad, March 4:

Steel prices, which were stable at Rs 36 before the lockdown, have gone up to Rs 55-60 per kg, while cement prices have gone up from Rs 150 to Rs 335-350 per sack. There are strong indications that construction rates will go up to at least Rs 100 per square foot from April onwards due to the huge rise in raw material and labour wages. Many builders in the city have decided to implement the rise. However, bookings made till the end of March will be made at the current rates.

After the lockdown, the builders had to face many difficulties to get the construction work started smoothly. In January, the price of steel went up from Rs 36 to Rs 60 per kg. The price of cement has gone up to Rs 60. Last month, the union finance minister, while presenting the budget, announced a reduction in import duty on steel, after which the price of steel has come down from Rs 60 to Rs 51. However, due to rising fuel prices and transportation fares, the price of steel has once again gone up to Rs 59 and the price of cement has gone up by 20 per cent to Rs 335 from Rs 270 in the past few days. Hence builders have indicated that the construction rates will go up.

Prices might be increased:

Increased steel and cement price might lead to an increase in the per square foot price from Rs 150 to Rs 250. Similarly, an increase in labour wages has also lead to a surge in RCC construction price from Rs 120 to Rs 140 to 145 per square foot.

There is no option but to increase the price

As labour wages, cement, and steel prices have all risen, so has the rate of construction per square foot. Ultimately, the cost of construction materials determines the value of the project, so the constant rise in prices is a matter of concern and many builders have been thinking of a price hike since April. At present, the construction cost per square foot for commercial and residential properties ranges between Rs 1,150 to Rs 1,900. However, this may be increased by Rs 100 since April, said a member of CREDAI on the condition of anonymity.