Price hike in construction materials including cement; Construction sector at standstill

KOCHI: The construction sector is at a standstill due to steep price hikes in essential materials like sand, metal, granite and cement. Prices have surged by up to 25 percent since before Covid-19 leading to challenges in projects ranging from mega constructions to individual house builds.

One major issue plaguing the industry is illegal quarries, posing a social menace and hindering legal operations. High license fees and border taxes have forced many quarries to shut down, exacerbating the shortage of materials. As a result, construction relies heavily on alternatives like msand and gravel powder.

The cost of materials has skyrocketed, with granite now costing 10 to 15 rupees more per cubic foot compared to 2020. Transport expenses have also surged, with mini lorry deliveries costing up to 5400 rupees for granite and 6000 rupees for Msand, including rental fees. Steel prices have spiked, reaching 80-90 rupees per kg for wire rope, further adding to construction expenses.

Government's LIFE scheme, offering up to four lakh rupees per house, provides some relief, but contractors still struggle with rising costs. A 400-420 square feet house now costs around six lakh rupees to build, making it increasingly difficult for the common people to afford construction projects.