Rising Prices Cause Construction Costs Go Berserk | Nearby News
Home
Newsletters
Stories
Events
LifeStyle
Business
Administration
Politics
Entertainment
Startups

Hyderabad

Rising Prices Cause Construction Costs Go Berserk
A steep rise in construction materials prices has resulted in cost uncertainty on a significant scale in the construction industry.
G
Guru Prasad
Hyderabad
Sun Jan 16 2022
share via :
Rising Prices Cause Construction Costs Go Berserk
A -
A +

A steep rise in construction materials prices has resulted in cost uncertainty on a significant scale in the construction industry. According to JLL’s report, the steel price has increased by 45% from Rs 45,000 per metric tonne (MT) in Q1 2020 to Rs 62,300 per MT in Q4 of 2021. Steel price has been increasing rapidly post Covid-19 due to supply chain uncertainties, rising raw material prices, and high global & domestic demand.


The cement price has increased by 38% since Q1 2020, which has raised the cost of other construction raw materials like concrete and cement blocks. In two years, cement prices have increased by Rs 2,000 per tonne, i.e., from Rs 5,120 per MT to Rs 7,130 per MT.


Aluminum has seen a price increase of 58% since Q1 2020. With global recovery and subsequent demand for aluminum, it is predicted to go even higher in the upcoming quarters as the supply may not be meeting the demand. If the cost of aluminum was Rs 1.13 lakh per MT in Q1 2020, it rose to Rs 2.03 lakh per MT in Q4 2021.


According to the report, the labor cost has gone up by 10-15%, besides the regular increase, due to the knock-on impact of Covid protocols and the costs associated with it. This includes costs related to compliance to new protocols like RT-PCR tests, idle time until test results, increased accommodation space for the same amount of labor, quarantine facility, and sanitation measures. Moreover, there is a shortage in labor supply, forcing the contractors to pay higher wages to complete work.


Get your local newspaper delivered to your Email at 7am everyday
Select City
Select City

FOLLOW US

Rising Prices Cause Construction Costs Go Berserk
Rising Prices Cause Construction Costs Go Berserk
Latest Articles
Kala Bhairava, Sri Simha Join Green India Challenge In Hyderabad
Kala Bhairava, Sri Simha Join Green India Challenge In Hyderabad
Hyderabad Set To Witness Record Number Of Launches
Hyderabad Set To Witness Record Number Of Launches
Model Corridors To Dot Hyderabad
Model Corridors To Dot Hyderabad
Rains To Return To Hyderabad
Rains To Return To Hyderabad
Hyderabad Police Action 1948 Explained
Hyderabad Police Action 1948 Explained
Is HMDA Going To Privatize ORR For 30 Years?
Is HMDA Going To Privatize ORR For 30 Years?
Hyderabad Weather Update: Light Rain In City Today
Hyderabad Weather Update: Light Rain In City Today
Move Over Golconda, Charminar
Move Over Golconda, Charminar
NTR Marg Beautification Begins In Hyderabad
NTR Marg Beautification Begins In Hyderabad
India’s first ‘Ozone Run’ Becomes A Major Hit
India’s first ‘Ozone Run’ Becomes A Major Hit
Related Articles
Resale Flats Are No Longer A Cheap Option
Resale Flats Are No Longer A Cheap Option
Pandemic Barely Impacts Hyderabad’s Robust Realty Sector
Pandemic Barely Impacts Hyderabad’s Robust Realty Sector
Yousufguda: Most Searched Locality For Residential Property
Yousufguda: Most Searched Locality For Residential Property
Hyderabad Witnesses Highest Realty Sales in 11 years
Hyderabad Witnesses Highest Realty Sales in 11 years
Housing Has Turned Big and Spacious in Hyderabad
Housing Has Turned Big and Spacious in Hyderabad
Hyderabad's Realty in Doldrums As Election Year Approaches
Hyderabad's Realty in Doldrums As Election Year Approaches
NRIs Put Their Monies in Hi-end Properties
NRIs Put Their Monies in Hi-end Properties
Green Is The Word for Govt and Private Building in Hyd
Green Is The Word for Govt and Private Building in Hyd
Sale of Luxury Properties Highest in Hyderabad
Sale of Luxury Properties Highest in Hyderabad
HMDA to Auction Plots to Bail Out Cash-starved State Govt
HMDA to Auction Plots to Bail Out Cash-starved State Govt
Ready-to-Move in Properties in Great Demand in City
Ready-to-Move in Properties in Great Demand in City
Hyderabad To Be Filled With Skyscrapers
Hyderabad To Be Filled With Skyscrapers
Jubilee Hills No Less Than Mumbai and Delhi in Property Sales
Jubilee Hills No Less Than Mumbai and Delhi in Property Sales
Realty Boom At Its Peak at Hyd-Chevella Road
Realty Boom At Its Peak at Hyd-Chevella Road
Demand for Properties Between Rs 25 to Rs 50 Lakh High
Demand for Properties Between Rs 25 to Rs 50 Lakh High
Gachibowli, the Uncrowned Western Zone of Hyderabad
Gachibowli, the Uncrowned Western Zone of Hyderabad
Subscribe to our Newsletter
Get your local newspaper delivered to your Email at 7am everyday
Select City
Select City
logo
hi@nearbynews.in
Gachibowli, Hyderabad - 500032
nearby news © - 2022