Rising prices take construction cost skywards in Hyderabad

High-cost uncertainty has been an outcome of sheer rises in the prices of construction materials in the construction industry. As the JLL’s report stated, the price of steel has expanded by 45 percent from Rs 45,000 per metric tonne in Q1 2020 to  Rs 62,300 per metric tonne in Q4 2021. Due to supply chain uncertainties, increasing prices, and high demand, steel prices have been rising steeply post Covid-19. 

The cement price has boosted by 38 percent since Q1 2020, inflating the costs of other construction raw materials like concrete and cement blocks. Cement prices have increased by Rs 2,000 per tonne in the past 2 years. 

Aluminum has seen a price increase of 58 percent since Q1 2020 and is foreseen to rise likewise with global healing and successive demand in the impending sections as supply may not match the anticipated demand. 

The report stated that the cost of labor has also risen 10-15 percent, more than the average price-rise due to the vital influence of Covid-19 protocols and its correlated costs including all mandatory safety measures. The shortage in labor supply is yet compelling the contractors to pay higher wages for the fulfillment of work.