DMK government hurts the people of Tamil Nadu .... Rising apartment prices risk ...!

The real estate industry has said that the price of cement and wire (steel) in Tamil Nadu is likely to go up by up to 10 per cent in apartment prices.

Cement, wire price hike:

Construction materials such as cement and wire are expensive. As a result, those who have been doing construction work, including housing, with the help of a bank loan, and those who have taken up construction work on a contract basis have been affected.

In addition, apartment building companies have also been affected. In May, a 50 kg bundle of cement cost Rs 460. It has risen to Rs 520 in June. Similarly, the price of wire has also gone up more than usual.

Apartment house prices rise:

Commenting on this, Suresh Krishnan, Head, Grado Tamil Nadu, said: “Cement and wire prices have risen sharply in the last two months, which is the most important requirement for construction.

Cement costs between Rs 60 and Rs 80 per brand. A tonne of steel has risen from Rs 40,000 to Rs 70,000 at present. Overseas inflation is said to be the reason for the rise in wire prices.

Due to the high cost of these, now, anyone undertaking a construction project will have to spend extra money. As a result, apartment prices could rise by as much as 10 percent.

"There is a huge difference in the price of cement sold in Tamil Nadu and neighboring states. As a result of the Rs 50 hike in cement prices, the cost will go up by Rs 20 per square foot.

3.4 percent increase:

Analyst at research firm Mkai (Umnhah) said: Cement prices in Tamil Nadu have increased at a compound annual growth rate (CAGO) of 3.4 per cent over the past four years. This is an increase of 20 to 22 percent from fiscal 2020 to fiscal 2021. It has increased by 3.4 per cent in the last 3 to 4 months.

Increase in input costs:

When asked about this by a senior manager involved in the cement industry, he said, ‘Input costs have increased. Accordingly, the price has gone up.

The price of petroleum coke (pet coke), the main input for cement production, has risen from $ 45 to $ 130 per tonne. In addition, the price of diesel has gone up from Rs 60 to Rs 90.

The contribution of the cement sector to the growth of India is significant. About 60 percent of cement production is used in the construction industry.

The reason for the non-increase in cement consumption is that the construction companies control the price of houses too much. But they often blame the rise in cement prices.

The share of cement in house prices is around 1.5 per cent to 2 per cent. Only half a pound of cement per square foot will be required. Therefore, it is unacceptable that the price of apartment house will go up as the price of cement goes up.

Therefore, the price of apartment houses should be reduced, 'he said.

Government Island Request:

There is opposition from various quarters that the Tamil Nadu government should hold talks with cement manufacturers and construction companies to address this issue.