Rising steel prices due to Ukraine war may make homes costlier: Builders & Buyers.
Credai has demanded a government probe to find out whether the price rise is due to cartelization in the steel sector.
Builders. , however, also attribute it to the war in Ukraine. The conflict has added to the rise in prices of construction material, especially steel, apart from plastics and other alloys that go into building real estate, they say.
The builders. claim that it may ultimately lead to an increase of 20% to 30% in the selling price of real estate in new projects.
A note shared by Credai says rates of steel have doubled to Rs. 84,000 a tonne since a year. A bag of cement now costs Rs. 400 a bag. The two components make up 40% of the total construction cost. Bricks, which cost Rs. . 6,500 per thousand are now Rs. 8,000. Cost of other items like wires, fittings, aluminium and even wages have gone up by 40%.
the earlier base level of Rs. 1,800 per square feet the construction cost may easily cross Rs. 2,100 and in premium projects it would go to Rs. 2,500 a square feet. This may lead to a hike of Rs. 300 per square feet in sale price too.
This is because Ukraine is a major producer of steel, which also caters. to demand in Europe. The war has led to a demand from other sources too.