Rising cement prices leave realty sector in turmoil

HYDERABAD: Giving sleepless nights to people who dream of owning a house, the price of cement - one of the most crucial components in construction - has seen a steady rise. Although the price of cement has been fluctuating, the spike has mostly been northwards, with the cumulative rise being 60 per cent to 70 per cent post Covid-19 lockdowns. While the price of a cement bag was around Rs 200 before the outbreak of Covid-19, it is now being sold at around Rs 350.

In the latest increase, several cement companies have raised the prices by Rs 10 to Rs 20 per 50 kg bag. The cement industries are attributing the hike to increased fuel prices and transportation of raw material. Telangana Developers Association president GV Rao has admitted that the spike in building material would adversely affect the construction sector. He maintained that the cement companies eventually have to lower the price if construction activity slows down. 

Ambati Murali Krishna, CEO of Bajrang Urban Infra, said that since one of the government’s priorities is housing for the poor, the onus is on it to rein in the prices of cement, steel and other construction materials. He said that sudden rise in the cement or steel price would leave the construction budgets in disarray and eventually cause disputes between owners and contractors.

Gaddhala Chandrashekar, a government teacher who has started constructing his house, said that the construction cost has been increasing beyond all expectations and calculations. “I wanted to build a multi-storeyed building, but given rising prices, I am settling for G+ 1 structure,” he said.