Builders in the region seem to have hit pause mode in view of the escalating cost of cement, steel and other construction materials.
Medium-scale builders say that in the absence of cost-escalation clause with buyers, they find themselves forced to operate with squeezed profit margins. On an average, the cost per construction for no-frills buildings in the city and surroundings now hovers around ₹ 2,000 per square foot for ground floor, and ₹ 200 lesser for upper floors.
There has been an increase by at least ₹ 500 over a year in per-foot construction cost, due to the price rise, Babu, a building contractor, said.
While the cost of first-quality cement has risen to upwards of ₹ 450 per 50-kg bag, the price of steel has also gone up to over ₹ 70 per kg. According to the contractors, the labour cost has also gone up to ₹ 850 per day for masons and ₹ 500 per day for helpers. very less number of prospective house-owners accept the rationale behind cost-escalation clause, they say.
Earlier this month, the Federation of All Civil Engineers Associations of Tamil Nadu and Puducherry made a representation to Chief Minister M.K. Stalin to bring down the cost of cement and other construction materials.
