There has been a surge in the prices of raw materials in the construction of real estate, which has now shaken up the businessmen in the real estate industry. “There has been a steep increase of almost 100 for every cement bag, and 2,200 per metric tonne of steel during these tough times. This is unethical and against the trade practices,” said S Sridharan, chairman of CREDAI’s TN Chapter.
Even though prices of raw materials have shot up, flats for sale in Manapakkam and other
such areas are still available at affordable prices.
The real estate developers in Tamil Nadu had just heaved a sigh of relief with the easing of restrictions for the sector, but the happiness was short lived with the spike in prices of raw material. Seeking intervention from Chief Minister Edappadi K Palaniswami, Sridharan said that steel and cement are the most essential materials for construction, and any increase in
prices will have a direct impact on the cost of construction.
With the Chief Minister’s intervention, and the changes restored in the prices of the raw materials, construction companies with ongoing works in several areas will not feel the impact as bad. Many projects like apartments in Ambattur are still available for people looking to invest in real estate.
He added that it would be difficult for developers to bear the huge differences in cost in this market scenario, and said that it should be capped, especially in states such as Maharashtra and Karnataka. “The developer will be left with no other option than to stop construction, and this will have an impact on customers too,” added Sridharan. However, customers looking for opportunities to buy flats in Thirumullaivoyal, and areas neighbouring places can do so with ease.