Vijayawada: Increase in construction materials price keeps realtors in tight spot

Vijayawada: Real estate sector, which is gradually recovering from Covid impact, is once again facing problems due to the skyrocketing prices of steel, cement, PVC pipes, hardware, labour charges etc. Realtors and developers, who entered into agreement for the construction of projects, are worried as how to complete the projects as per their agreements since the prices of construction material have increased by 30 to 50 per cent during the past few months in the State. They are worried as they can't increase their price after they entered into agreement with the customers.

Since January to April 2022, steel price has increased from Rs 60,000 to Rs 90,000 per ton. Cement price also touched Rs 400 mark per bag. Electrical cables, switches and other materials' prices increased during the past few months. Labour charges and prices of hardware, sanitary ware and PVC pipes increased considerably causing a burden on the realty sector.

Various organisations related to the construction sector have observed one-day work holiday on April 9 in Andhra Pradesh to take their problems to the notice of the State and Central governments.

National Real Estate Developers Council (NAREDCO), Confederation of Real Estate Developers Association of India (CREDAI), Indian Institute of Architects, Builders Association of India, State of Andhra Pradesh Building Contractors Association (SABCA) and other associations observed one-day work holiday and decided to launch agitation demanding the government to take measures to check the skyrocketing prices of building materials.

CREDAI Andhra Pradesh vice-president YV Ramana Rao said the realtors and developers are facing an uphill task of completing the ongoing projects. He said there is no control on the prices of steel, cement, hardware, PVC pipes etc in the country. He said the realtors are not willing to take up new projects in the State due to abnormal increase in the prices of iron and cement and other materials.

NAREDCO Central zone president K Mukteswara Rao told 'The Hans India' that the realtors and developers have to comply with the agreements they made with customers on completion of the project. He said the builders can't increase the prices as per their wish and they must complete the project as per the agreement. He wondered why the prices of steel reached to Rs 90,000 per ton and cement bag price touched Rs 400. He alleged on the pretext of war the prices of diesel increased and the prices of PVC materials, which are based on petroleum products, increased by nearly 50 per cent during the past few months. He said the construction sector is the second largest job provider in the country after agriculture but there is no control of the government on iron and steel.

Indian Institute of Architecture Andhra Pradesh secretary Architect V Venugopal said increasing prices of steel and cement is a national problem and property buyers would suffer if the prices are increased unabated. He said there is no specific reason why the prices of building materials have increased. Stating that construction sector has been suffering since the demonetisation, he recalled the implementation of GST and subsequent Covid lockdown badly affected the construction activity in the country.

Builders Association of India vice-president V Venkateswara Rao said neither the State government nor the Central government is taking measures to check the skyrocketing prices of building materials. He said the construction activity will come to halt if the prices of building materials rise further in the country. He said the government is getting GST on sale of cement, steels, PVC pipes and other materials but the government is not worried about the problems of the realtors and builders. He stressed upon the need to develop a mechanism to regulate the prices of construction materials in the country.