Realty firms may witness margin shrink from steel price surge

The surge in prices of steel products that are used in the construction sector has impacted real estate companies adversely as the industry is not ready to pass the brunt of the additional cost to the buyers, and there may be a shrink of margin by 4-6%, said, realtors. The price of TMT bars or construction steel recently reached Rs 45,000 per tonne in some markets, which is at least 30-40% higher than the pre-Covid rates. Nandu Belani, Real Estate Industry Body Credai Bengal president, said that the surge in steel prices would reduce the margin by 4-6%, which is quite high for the industry. Recovery has only been witnessed in the residential sector, while the industrial and commercial segment is still reeling under pressure, and the revved-up cost will lead to delays in the launch of new projects, as reported by officials. Also Read: Steel prices hiked again Image Source