Aftermath of price hike in recent years: Construction sector feels the crunch

[Lahore_Real_Estate]

By Zaheer Shahzad

LAHORE: Like other sectors of the economy, the construction sector is also feeling the aftermath of unprecedented price hike in the recent years.

The hardest hit is the cost of material followed by cost of transportation and cost of labour involved in various areas of building and construction. As for materials are concerned, cement is posing a serious threat to the ones who are venturing construction projects. A standard bag of cement, which was at Rs 240 or Rs 260 a couple of weeks ago is now available at Rs 285 or above. White cement is being sold for Rs 435 to Rs 460 as against Rs 380 to Rs 395. At times the market also suffers from shortage of cement or hoarders create artificial shortage in a quest to make more profit.

The iron used in lentil, windows, doors, gates and various other things is already beyond the buying power of a middle-class person. Due to rise in the prices of iron, iron sheets and steel, an iron gate of 10 feet is costing Rs 24,000 to Rs 35,000. The cost of T-iron jumped from Rs 44,000 per tonne to Rs 58, 000 per tonne during the past few months. The same case is with windows, the prices of which are varying with regards to the variety.

A truck carrying 4,000 bricks of grade-1 was costing Rs 13,200 to Rs 14,000. Now its price has gone up at Rs 15,800. Grade-2 bricks are now available for Rs 3,000 per thousand. The same was available at Rs 2,650 a month back. By a general idea a house of three beds, drawing, dinning and a couple of bathrooms require 30,000 bricks. Similarly, the price of granual (crush) has also gone up as trucks fetching the material from northern Punjab have increased their fare considerably. A truck having 900 feet of granual is costing Rs 45,750 as against its earlier price of Rs 40,700.

The sand price has also gone up on account of increase in transportation charges. A premium quality sand trolley is available for Rs 2,300 and Rs 2,500 as compared to its previous price of Rs 18,50. A kassu mixed sand trolley is being sold for Rs 1,800. It was previously sold for Rs 1,650.

The cost of bitumen is touching the sky especially after change of hand of bitumen making companies like Attock Refinery and National Refinery Karachi. A 12-kilogramme tin of bitumen, which was sold in the market two months ago for Rs 360 is now available for Rs 450 or so. Low quality Iranian bitumen is also available in the markets for Rs 500 per 17kg. Paints are also essential items in house construction. A 20kg fine quality tin of ICI is available for Rs 1,850, Master Rs 1,750, National Rs 1,550 etc. While low branded paints are sold for Rs 250 to Rs 450 per tin.