There has been a steep hike in construction costs in the aftermath of the Ukraine-Russia war, as input costs have almost doubled for many of the materials. (DC file photo)
KAKINADA: There has been a steep hike in construction costs in the aftermath of the Ukraine-Russia war, as input costs have almost doubled for many of the materials. Builders and contractors are unable to complete their constructions.
Steel prices have shot up to 86,000–90,000 per tonne. Prices of plumbing, electricals, tiles and sanitary materials have also doubled. Labour costs have also increased up to 50 per cent in recent times. Cement prices have touched 380–400 per bag.
Confederation of Real Estate Developers Association chairman S.V.M. Chandrasekhar said cost of construction has gone up from 1,500 to 2,300–2,500 per square feet. "After Covid-19 pandemic, prices of all materials had been hiked by 33 per cent. But, from past one month, costs have shot up to 50 per cent," he pointed out.
Chandrasekhar said due to abnormal hike in costs, construction activity has slowed down. In future, the construction sector will face a lot of hardships. Individuals building houses are in a great crisis, as their estimates have shot up by 50 per cent, said a builder Duvvuri Subrahmanyam.
He said many builders have stopped taking up construction contracts. They are taking up only labour contracts.