Chennai: The realty sector in Tamil Nadu has taken a big hit due to the closing of sand quarries in the state and the non-availability of sand in greater Chennai has been haunting the realtors and the new housing projects delaying the completion dates, admit sources in the realty industry.
“The river sand sells at least four times higher than the normal rates. The current supply is not able to meet the demand forcing the realtors to pay extra price,” said CREDAI president Suresh Krishn who is also the managing director of Isha Homes.
Due to the non-availability of river sand, the realtors are now using m-sand. For some basic civil works M-Sand is reliable, but when it comes to plastering and quality finish there is no alternate to river sand, he said.
“Most of the real estate companies have closed down their expansion projects as the market is dull post demonitisation. The sand per unit sold around Rs 3,500 per unit and now the cost has escalated to Rs 7,000 per unit. Further quality sand is not available and there is ‘pilferage’ to the quantity that reaches construction site”, says Nanda Gopal, vice president, Ramprasad Constructions.
“Though the government recommends M Sand as an alternate, most of the builders prefer only river sand. M Sand is yet to prove its stability in the market, whereas river sand has already established its market. Still most of the construction companies do not purchase M Sand despite a unit available for Rs 3,000,” Mr Nanda Gopal said. “Though M sand is cheap and easily available, we prefer the river sand as a policy and explain our customers whenever the project gets delayed, he said adding that the realty market is slightly looking positive since last month.
Already the real estate sector is hit due to various factors like demonitisation, fund crunch and IT lay offs. Though the builders are working on their math to reduce the construction cost, the sand acts as a main villain escalating the project cost, opined D. Vijayakumar, a realty consultant based in Tambaram.
Branch offices of realty firms are no longer hiring marketing executives as new projects are put on hold. Once when the sand prices are slashed the move will help the realty market to improve, added Vijayakumar.
What is m-sand ?
M-sand is nothing but manufactured sand. Boulders are crushed and turned into sand. M-sand is used as an alternative to river sand to meet the demands of the
construction sector and is comparatively cheaper to river sand. M Sand comes in two variants rough sand and M sand fine. While M sand reduces the water
consumption for construction activities, builders still prefer river sand for high-end finish and long-term durability.
