VISAKHAPATNAM: Individuals houses and flats) have turned costlier by 10 to 15 per cent in parts of Andhra Pradesh as developers have effected a price hike due to the high costs of construction material. With prices of key building materials like steel, cement, plastic and labour charges witnessing a steep rise, builders as well as customers are facing the heat.
The real estate sector was hit hard by the pandemic. Now, a steep jump in prices of raw materials has compounded the woes of developers. The price rise has lead to homes getting costlier in Vizag and Vijayawada.
Expressing their concerns over the abnormal increase in the prices, builders and developers (CREDAI, NAREDCO, Builder Association of India) in parts of state held a protest on Saturday by halting ongoing construction works for a day.
Speaking to TOI, president of CREDAI-Andhra Pradesh, B Raja Srinivas said, of late, basic prices of cement, steel, electrical, painting, plumbing, sanitary and 250 other materials have escalated abnormally. “The prices of petrol and diesel have drastically increased which is the main reason for the price rise of all other materials. Prices of some of the construction materials have increased by at least 40 to 50 per cent which jacked up the construction costs. Finally, the burden will fall on the shoulders of the buyer,” Srinivas said.
Cement and steel makers increased the prices citing various reasons such as losses due to the pandemic. The price of one tonne of steel was 35,000 some months ago, but is now 70,000. Similarly, the price of a cement bag increased from 300 to 400 and the price of sanitary, electrical and other items increased by over 50 per cent in the past few months, said Srinivas. “We are appealing to the central and state governments to take steps to save the real estate sector,” he added.
“I planned to purchase a 2 BHK at Madhurawada in Vizag six months ago and that time, the price was 38 lakh. But due to some reasons, I postponed the plan. Now the price of the flat at the same locality is over 45 lakh,” said N Ramesh Kumar, a private sector employee.