The Confederation of Real Estate Developers' Associations of India (CREDAI), Andhra Pradesh chapter, has reported a significant increase in construction material costs, posing challenges for the state's real estate sector. According to Dasari Rambabu, General Secretary, CREDAI A.P., these cost escalations are occurring as the industry was just beginning to recover from a previous downturn.
The association attributes the rising costs to several factors, including disruptions affecting local tile and sanitary ware businesses, leading to increased reliance on branded suppliers. Elevated international crude oil prices have resulted in higher transportation costs for essential materials like cement, sand, and bricks. Furthermore, the import of raw materials crucial for steel and aluminum manufacturing has been disturbed. CREDAI states that overall raw material prices have risen by 15% to 25%, citing specific increases such as cement from ₹240 to ₹300 per bag, and steel from ₹56,000 to ₹70,000 per tonne.
CREDAI warns that a prolonged crisis could lead to millions of job losses in the construction sector. The organization has called upon the government to intervene, specifically requesting strict surveillance to prevent companies from creating artificial shortages under the guise of price hikes. CREDAI estimates that it would take approximately five months for the sector to recover from the current situation.
Source: https://www.thehindu.com/news/national/andhra-pradesh/credai-calls-for-government-action-amid-rising-construction-costs/article70826892.ece
