Pros & Cons of Growing Construction Materials’ Prices
Although, inflation has always been present in Pakistan and remained a vital concern, but prices of materials being used in construction never witnessed such a hike. With the prices soaring up so highly the question of property affordability and projects construction raised quite worryingly. Because the ever-increasing prices of materials for construction compel builders and developers to continuously rethink and reevaluate their budgets and funds for their under-construction and fresh real estate projects. That has left many projects delayed as well as abandonment which has further induced stress on the overall construction and real estate business.
One of the key under-performances of previous governments was they failed, despite tall claims, to implement housing policcies properly. Specially the recent unchecked and unstoppable high-cost of construction materials has made not only low-cost sheltering but even standard housing projects impossible in Pakistan. Let’s have a view;
Steel Sector
In the month of April this year the prices of construction material have been sizably increased by steel and cement manufacturers. First steel makers have increased the prices of steel bars by Rs 8,000 to bring the cost at Rs 208,000 per ton. Giving justification the steel manufacturers said the steel bar prices have been revised due to “escalating energy prices and freight rates”. However, it is important to mention the price of steel bars in November 2020 was just Rs110, 000 per ton.
Cement Industry
Second, the price of cement has been increased in April from Rs 787 to Rs 850 per bag of 50 kg. As per data of Sensitive Price Index, the price jumped enormously up by 29.30% if compared with March, 2021. Cement manufactures blame the “rise in coal prices, squeezed supplies and other similar issues” which have caused a surge in cement prices and subsequently led to an increased cost of construction.
Other Building Materials
Steel and cement are two significant materials of construction, specially steel which holds 40 to 45% share in total construction cost of a high-rise project. Any jump in their prices also leads to rise in cost of other building products like tiles, sanitary, wood, aluminum and etc. If the prices aren’t checked and controlled the wheel of housing and construction industry will likely stop to move.
Even basic construction materials like aggregate base course and sand have scaled greatly from Rs. 7000 to 12,000 and Rs. 4500 to 9000 respectively. That has led construction cost in Pakistan to be risen dramatically in recent years, whether it is for commercial or residential projects.
However, there is also a positive aspect of these inflated prices. First there has been a huge improvement in the quality of such items and there are a lot more opportunities available to choose from nowadays. The web portal of BMTPakistan.com offers a lot of options and verities for décor and construction products at competitive rates like imported tiles and furnishings, or imitations of all the things you need and want to make your house a dream home.
Second new building trends have also evolved dramatically over the years. Now you will be able to quickly find furnishings and decorations entirely devoted to homes or offices, making your job much easier and enthusiastic.