+
Maha realtors to halt construction as raw material costs skyrocket
Real Estate

Maha realtors to halt construction as raw material costs skyrocket

Maharashtra realty developers are planning to stop purchasing raw material and pause the construction activity at their ongoing sites owing to escalating prices of key input materials including cement and steel.

The apex body of more than 3,000 builders in Maharashtra, Confederation of Real Estate Developers' Associations of India (CREDAI), threatened to cease work at its construction sites owing to the steep increase in rates of building materials which may directly influence the costs of apartments and delay the possession schedules promised to the buyers.

CREDAI Maharashtra President Sunil Furde told the media that the costs of cement, steel, sand, bricks and all other essential building materials have been steadily escalating since the last two year and have currently skyrocketed to unaffordable levels.

The costs of steel -- the most essential building element -- has doubled from Rs 42,000 per tonne to Rs 85,000 per tonne now, cement bags have increased from Rs 260 to Rs 400, cost of four-inch brick has increased from Rs 6,500/1,000 to Rs 8,000/1,000, sand has escalated from Rs 6,000/brass to Rs 7,500/brass, while wash sand has increased from Rs 3,800/brass to Rs 4,800/brass, Furde said.

Besides, the price of all other materials such as fittings, tiles, electric wires, pipes, fabrications, sanitaryware, secondary minerals, and labour charges have also increased by about 40%. With such high costs, they cannot afford to build homes. So all CREDAI Maharashtra members are planning to close all building activities.

The CREDAI has shot off a letter to the Maharashtra government, comprising Deputy CM and Finance Minister Ajit Pawar and Revenue Minister Balasaheb Thorat, asking to verify whether the surge in raw material prices is natural or due to hoarding for profiteering during the pandemic lockdown period.

The CREDAI has additionally requested Maharashtra Real Estate Regulatory Authority (M-RERA) to extend the completion deadline for the shut projects.

Furde said that apart from the rising costs of raw materials, the proposed 1% Metro Cess to be imposed on all property acquisitions in Mumbai, Pune, Thane and Nagpur from April 1 will further hit consumers planning to purchase a house, and requested the state government to reconsider or delay the move by at least two years.

Image Source

Also read: Builders urge Maha officials to defer metro cess levy by 2 years

Maharashtra realty developers are planning to stop purchasing raw material and pause the construction activity at their ongoing sites owing to escalating prices of key input materials including cement and steel. The apex body of more than 3,000 builders in Maharashtra, Confederation of Real Estate Developers' Associations of India (CREDAI), threatened to cease work at its construction sites owing to the steep increase in rates of building materials which may directly influence the costs of apartments and delay the possession schedules promised to the buyers. CREDAI Maharashtra President Sunil Furde told the media that the costs of cement, steel, sand, bricks and all other essential building materials have been steadily escalating since the last two year and have currently skyrocketed to unaffordable levels. The costs of steel -- the most essential building element -- has doubled from Rs 42,000 per tonne to Rs 85,000 per tonne now, cement bags have increased from Rs 260 to Rs 400, cost of four-inch brick has increased from Rs 6,500/1,000 to Rs 8,000/1,000, sand has escalated from Rs 6,000/brass to Rs 7,500/brass, while wash sand has increased from Rs 3,800/brass to Rs 4,800/brass, Furde said. Besides, the price of all other materials such as fittings, tiles, electric wires, pipes, fabrications, sanitaryware, secondary minerals, and labour charges have also increased by about 40%. With such high costs, they cannot afford to build homes. So all CREDAI Maharashtra members are planning to close all building activities. The CREDAI has shot off a letter to the Maharashtra government, comprising Deputy CM and Finance Minister Ajit Pawar and Revenue Minister Balasaheb Thorat, asking to verify whether the surge in raw material prices is natural or due to hoarding for profiteering during the pandemic lockdown period. The CREDAI has additionally requested Maharashtra Real Estate Regulatory Authority (M-RERA) to extend the completion deadline for the shut projects. Furde said that apart from the rising costs of raw materials, the proposed 1% Metro Cess to be imposed on all property acquisitions in Mumbai, Pune, Thane and Nagpur from April 1 will further hit consumers planning to purchase a house, and requested the state government to reconsider or delay the move by at least two years. Image Source Also read: Builders urge Maha officials to defer metro cess levy by 2 years

Next Story
Infrastructure Transport

Cabinet Clears Rs 15.07 Bn Greenfield Airport Project in Kota-Bundi

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the Airports Authority of India’s (AAI) proposal for the development of a Greenfield Airport at Kota-Bundi, Rajasthan, at an estimated cost of Rs 15.07 billion.Kota, located on the banks of the Chambal River, is widely recognised as the industrial capital of Rajasthan and a prominent educational coaching hub. To support the region’s growing needs, the Government of Rajasthan has handed over 440.06 hectares of land to AAI for the project.The new Greenfield Airport will be designed to handle oper..

Next Story
Infrastructure Urban

Govt may extend MSME NPA classification period to 180 days

The Union government is considering a proposal to extend the non-performing asset (NPA) classification period for loans to micro, small and medium enterprises (MSMEs) from the existing 90 days to 180 days, according to a senior government official who requested anonymity.“The proposal to extend the loan default period for MSMEs from 90 days to 180 days is likely to be taken up by the Cabinet soon,” the official said.The move is expected to provide relief to cash-strapped MSMEs, especially against the backdrop of steep US tariffs, giving them more time to regularise their loan repayments.Ne..

Next Story
Infrastructure Urban

FedEx, IIT Madras Launch SMART Centre for Sustainable, AI-led Logistics

FedEx has partnered with the Indian Institute of Technology (IIT) Madras to inaugurate the SMART Centre (Supply Chain Modelling, Algorithms, Research and Technology Centre) on the institute’s campus. The facility will drive innovation in sustainable and AI-driven logistics solutions. Backed by a five-year $5 million grant from FedEx, the SMART Centre aims to combine advanced research, digital technologies, and industry expertise to transform supply chains with a focus on agility, resilience, and environmental responsibility.The centre will also spearhead interdisciplinary projects in ar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?