Kolkata: Surge in prices of steel products that are used in the construction sector has an adverse impact on the real estate companies as these entities are now not in a position to pass the additional cost on their buyers and may witness shirking of margin by 4-6 per cent, realtors said.

The steel prices have increased at a time when demand for property is slowly getting back on track with the government measures and low interest-rate regime, they said. Price of construction steel or TMT bars had recently touched Rs 45,000 a tonne in some markets.