Housing costs increase by 10-15% in Andhra Pradesh

12 Apr 2022 CW Team

Individual housing and flats have turned costlier by 10-15% in parts of Andhra Pradesh as the developers have imposed a price hike due to the high costs of construction raw materials.

Building materials like steel, cement, plastic and labour charges are witnessing a steep rise, with the builders and customers facing the challenge.

The Indian real estate sector was hit by the Covid-19 pandemic. The steep rise in prices of raw materials has compounded the woes of developers. The price rise has led to homes getting costlier in Vizag and Vijayawada.

The Confederation of Real Estate Developers Associations of India (CREDAI), National Real Estate Development Council (NAREDCO), and Builder Association of India (BAI), in parts of the state, protested against the abnormal price hike of construction materials.

President of CREDAI-Andhra Pradesh, B Raja Srinivas, told the media that the basic prices of cement, steel, electrical, painting, plumbing, sanitary and 250 other materials had increased abnormally. The prices of petrol and diesel have also increased, which is the main reason for the price rise of all other materials.

He said that the prices of some of the construction materials have increased by at least 40-50%, which increased the construction costs. The buyers are facing challenges due to the price hike.

Srinivas said that the cement and steel producers increased their prices, highlighting the various reasons such as losses due to the Covid-19 pandemic. The cost of one tonne of steel was Rs 35,000 months ago, which is 70,000 now. Similarly, the price of a cement bag increased from Rs 300 to Rs 400, while the prices of sanitary, electrical and other required items increased by over 50% in the last few months.

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Also read: Rising construction costs increase home buying costs: CREDAI

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