Despite the presence of many regional manufacturers, cement in Tiruchi is getting costlier day by day.
Despite the presence of many regional manufacturers, cement in Tiruchi is getting costlier day by day.
Industry sources say volatility in prices of construction materials, especially cement, has deterred players in the real estate sector from scaling up their activities.
“In general, materials like cement and steel are becoming costlier. Despite there being so many cement manufacturers in the region, the cost is prohibitive. It is ironic that cement from other states is available at a lower price,” pointed out RS Ravi, proprietor, Aditya Construction and president of the Tiruchi chapter of Confederation of Real Estate Developers Association of India (CREDAI). Hindu.
Mr Ravi said the association, which has a membership of 55 real estate companies in the city, had given a representation to its national-level body about the impact of rising cement costs, hoping to find a solution to the problem.
“Cement is also an important ingredient in auxiliary products like fly-ash bricks, paver blocks, rainwater harvesting structures etc. Even ready-mix concrete units require continuous supply of cement,” said Mr. Ravi.
Mr Ravi said the rise in prices has led to restructuring of building costs, which have gone up by at least 15% in the past few months. “The cost of a simple fly-ash brick today is ₹8.20 per unit, which was just ₹7 earlier. If you add the cost of other materials like PVC pipe, steel etc., building a house can be very expensive these days,” he said.
Many industry players felt that there is a lack of public awareness about the cheaper alternatives in the cement market.
“The Tamil Nadu government’s ‘Valimai’ brand of cement which was launched in November 2021 is much more affordable at Rs 330 per bag. The reach of the brand has to be strengthened,” said I. Napoleon, president of the Tiruchi chapter of the Builders Association of India (BAI).
Apart from cement, the prices of steel, pipes and other essential commodities were skyrocketing even in the time of pandemic lockdown. He said that the Russo-Ukraine war has made the situation worse.
“The mindset of the people determines which brand of cement performs better in the market,” said Jayant Kumar M Mehta, a committee member, BAI-Tiruchi. “We can sell an apartment for a fixed rate, but the cost builders have to spend on labor and construction materials is too high. Only when physical prices are standardised, the real estate sector and economy can grow,” he said.
Recently, land prices in suburban Tiruchi have gone up due to new development projects proposed by the government.
After the announcement of an integrated bus terminus and wholesale vegetable market, the value of housing plots in Panjapur and Olaiyur suburbs have reportedly gone up significantly in a matter of months.
“High construction cost will slow down the expansion of the city unless the government steps in,” said Mr. Mehta. “We need a lot of layouts and bigger roads to grow. Both private and public agencies can be involved in the development. We are looking for properties in suburbs, but it is not safe to buy them at inflated prices if the projects do not go as expected. ,