Beyond reach : Soaring costs of construction worry citizens

LAHORE:

For many across Punjab, owning a place to live may remain a distant dream. Rapid increase in the cost of material used for construction has left millions wondering if they will ever own a place, they could call home.

According to details provided by experts who focus on the construction industry, the cost of material has soared significantly in the province.

“It is safe to say that the prices have increased by 25-30% across Punjab and more in urban centres,” said one expert.

A market survey revealed that the cost of bricks has increased by Rs.2,000. Previously, a total of 1,000 bricks were available for Rs. 11,000 in the market. Similarly, a bag of cement, which is the most important material in construction, has gone up by Rs. 530-580 per bag.

Furthermore, the closure of brick kilns has also contributed to the overall increase in cost of construction across the province.

“As per the contractor’s calculations, we needed Rs.1-2 million for a double-story building. The cost has suddenly increased and now we need Rs.1.8 million for the same construction,” said Rana Mubashir Hasan, an irked resident who is hoping to have his own house in Lahore.

The price of iron, another important material used in construction, he said has also increased. The cost of labour, Hasan said, has also gone up in the provincial capital.

“Previously, contractors would provide labour at Rs. 1,000 per day. Now they charge Rs.1,500 – 1,800 per day.”

Another perturbed citizen, Ahmed Hasan said, that the cost of marble, which is commonly used for flooring, has soared. “Not only that, the cost of electric cables and pipes for gas and water has also gone up,” claimed Hasan.

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“The cost is soaring by the day. I see an over all increase of 25-30% in the cost of basic items like cables and pipes,” he said. “The government has failed to control inflation. The vendors sell sub-standard quality items,” he added.

On the other hand, those who sell material used for construction are also apprehensive about the situation. According to one vendor, the market is more unstable than it was before the pandemic. “The supplies are short, and the retail prices keep fluctuating,” said Sheikh Habibullah, who owns a store that sells sanitary and bathroom fittings near Shalimar Link Road.

According to Habibullah, the federal government had promised to lower the sales tax on material used for construction by 25% to boost the industry. “Like most promises, that remains unfulfilled,” he said. “The government also promised tax exemption for low-cost housing projects,” he added.

 

 

Published in The Express Tribune, January 25^th, 2021.