Fuel And Raw Materials Prices In The Real Estate Industry Are Rising

Rising fuel prices adding to the expanded cost of raw materials such as cement, steel, and sand have impacted the cost of building properties in the city. 

The price of fuel has heightened for the eighth time in the past few days, steering the rise in the cost of raw materials such as bricks, cement, sand, and tiles, among others. Rise in steel prices has drastically increased construction costs as well. 

Ramakrishna Rao, President of CREDAI, said, “Over the past fortnight, steel prices have jumped 30-40%. Prices which were around 60,000 per tonne a few weeks ago have now jumped to 85,000 per tonne. Moreover, the steel supply is also erratic, which affects the overall construction cost." 

Builders repent the price rise of cement and sand, which is making them use alternatives. Prabhakar Rao, Chairman of Telangana Builders Forum said that a 50 kg bag of cement cost 200-250 until November 2021 and today it costs 300-400. Limited sand availability is forcing them to use manufactured sand for construction. Increased diesel prices only intensified problems by making transportation expensive. 

As an outcome, prices for residential and industrial projects might rise by 200 per square over the coming months.