Prices of most raw materials spike in TN
A dream home has become increasingly pricey in Tamil Nadu, as the cost of construction materials escalated significantly. As per projected estimates, there has been a 15% spike in the cost of various raw materials. The cost of most raw materials such as cement and steel saw a steep escalation, except for M-sand. This price escalation comes at a time when the real-estate sector was gradually gaining momentum after the impact of the pandemic.
The price of 53-grade cement bags of 50 kgs has increased by Rs 90. Whereas, steel rates have risen by Rs 22,000 per tonne over the past 18 months. Additionally, the cost of electric cables and plumbing cables like PVC pipes have increased by 12% and 14% respectively.
Most real estate developers have revised the wages in construction labourers from Rs 100 to Rs 150 per day. These factors have increased the overall construction cost of building a house.
Additionally, the Treasurer of Builders Association of India, S Ramaprabhu mentioned that individuals have to shell out 15% more than the estimate due to the increase in raw materials. Moreover, the prices of steel have increased by Rs 13,000 per tonne from September to December. It is critical to have a regulatory authority to regulate the prices of cement and steels per TRA of India.
A hike in prices of construction material could make developers go slow on existing projects.