Prices of construction material soared in 2021

Contractors predict upsurge in construction cost in wake of PM’s housing scheme initiative

RAWALPINDI:

Prices of construction materials touched a new high level during the current financial year as a result of the prime minister’s housing scheme initiative.

The construction cost of a five marla double-storey house has increased by Rs1 million in 2021 alone. Several contractors predict that the prices of cement, bricks, sand and steel will rise further in the financial year 2022.

Despite the rising prices of construction material, the daily wages of housebuilders and daily labourers have remained stagnant throughout the year. As inflation continues its upward trajectory, their economic woes have become even more pressing.

In January this year, the daily wage of a housebuilder was Rs1,500 and the wage is still Rs1,500.

Similarly, the wage of labourers was Rs1,000 in January, and today it stands at Rs1,000. The painter's wage has remained the same at Rs1,500 per day, even though the price of house paint material increased by 20 to 25 per cent in 2021.

The paint industry has not been able to grow much since the introduction of the new Chinese ceiling material for the decoration of walls and ceilings.

Although a slight decrease in the price of cement and steel was recorded in the outgoing year in the open market, the prices of bricks rose sharply along with rates of plumbers and labours of wood and steel doors.

Read Construction cost hits new high

In January 2021, a bag of cement costing Rs490 jumped to Rs730. In November, the price of cement further increased to Rs750 per bag with an increase of Rs20 per bag.

At the beginning of the current year, the price of 1000 bricks was Rs11,500, which has now increased to Rs13,000. Gravel trolleys costing Rs4,700 at the beginning of the year has now increased to Rs6,000. Prices of plumbing materials for sewerage, washrooms and kitchens increased by 30 to 35 per cent in the current year. Meanwhile, steel doors and window prices have shot up by 40 per cent and wooden windows and door prices by 45 per cent.

Raja Gustasp, a citizen who built a new five-marla double-storey house, said he started building the house in December last year. “I bought all materials from the market myself and now I know that items like cement, gravel, sand, brick, and transportation have almost doubled,” he said.

He, however, said the housebuilders and labourers were getting the same wages as they were getting at the start of the year. “If the five-marla house is built now, the cost will increase by at least Rs0.5 to 0.7 million,” Gustasp said.

Meanwhile, Munshi Abbasi, a contractor who builds houses, said: “Since the prime minister's sasta housing scheme kicked off, the cost of building material is increasing every month.” Demand for cement, bricks, steel and sand and gravel has increased, he added.

Abbasi further said that the prices of building materials had also gone up due to the influx of housing societies. “These prices will go up further in the next year,” he said.

Similarly, Samander Khan, a wholesale dealer of cement, bricks, sand and gravel, said that the prices of building materials increase every year. However, in 2021, the prices of sand, crush, cement and bricks witnessed an increase every month, he added.

With the new year fast approaching, several kiln owners and gravel dealers have already sounded the alarm for the price increase of everything. In mid-January, the price of bricks is expected to increase by Rs500 to Rs700 per thousand, while the price of gravel will increase by Rs300 to Rs500 per trolley, they said.

The rise in prices of building materials will discourage construction and daily wagers will bear the brunt as they will lose the opportunity to get work.

Published in The Express Tribune, December 29^th, 2021.