Credai contemplating ‘stop work’ due to rising prices of construction material

Explaining the price rise, Furde said, “the key components of construction material, which include steel, cement, four-inch bricks, sand and wash sand, electric wire, fittings, tiles, pipes, sanitary ware, fabrication, murum soil, secondary mineral, and most importantly wages have risen by about 40%.

Whether the rise in construction material prices is natural or due to hoarding or profiteering should also be investigated by the administration and government agencies. “Hence there is a humble demand to the state government to intervene and provide relief to ordinary home buyers, ” he added. “Apart from this, it is quite likely that a 1% metro surcharge will be re-imposed on all property purchases in Pune, Mumbai, Thane and Nagpur from April 1. This surcharge will have a direct impact on consumers who want to buy a home. The Credai members are strongly opposed to this decision and urge for its reconsideration. To draw the attention of the government, Credai members are contemplating stop-work as it is not possible to build houses by purchasing raw material at these increased prices. Also, the closed down projects should get extended date for its completion. To press for our genuine demands, Credai Maharashtra and Credai Pune Metro members have written to Deputy Chief Minister and Finance Minister Ajit Pawar and Revenue Minister Balasaheb Thorat,” he said.

Credai said the price of steel was Rs 42,000 (per tonne) a year ago which is nearly Rs 84,900 now. The price of cement (per bag) was Rs 260 for which one has to shell out Rs 400 now. The price of four-inch brick was Rs 6,500 per thousand bricks which has now increased to Rs 8,000. A similar increase is seen in sand and wash sand rates. The price of sand (per brass) has gone up from Rs 6,000 to Rs 7,500 now. The price of wash sand (per brass) has also gone up from Rs 3,800 to Rs 4,800.