Skyrocketing Cost of Fuel and Raw Materials in Real Estate Industry | Hyderabad News

Hyderabad: Rising fuel prices on top of the already spiraling cost of raw materials such as cement, steel and sand has hit the cost of building the roof of the city.
Developers predict this could drive up property prices over the next few months.
The price of fuel has increased for the eighth time in the past nine days, due to which the cost of landing raw materials such as bricks, cement, sand, tiles, among others, has also increased sharply . On top of that, the sharp rise in steel prices has dramatically increased the cost of construction.
“Over the past fortnight, steel prices have jumped 30-40%. Prices which were around 60,000 per tonne a few weeks ago have now jumped to 85,000 per tonne. Moreover, the steel supply is also erratic, which affects the overall construction cost,” said Ramakrishna Rao, president of the Confederation of Real Estate Developers of India (CREDAI), who is due to convene a meeting in the city ​​this week to discuss the issue among many about the development of real estate projects in the state.
Builders regret that the prices of cement and sand have also increased, forcing them to use alternatives. “A 50 kg bag of cement cost 200-250 until November last year. Today the same bag costs 300-400. Sand availability is also limited due to which we are forced to use manufactured sand for construction. The cost of diesel prices only makes matters worse as transportation of raw materials becomes expensive,” said Prabhakar Rao, Chairman of Telangana Builders Forum.
With developers already affected, prices for residential and industrial projects are expected to increase by 200 per square over the next few months.

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