Construction costs go through the roof
Housing and construction finance recorded a jump of Rs163 billion, or 85%, in 2021 as it amounted to Rs355 billion. PHOTO: FILE
The construction costs have increased significantly due to the surge in prices of essential building materials like cement, gravel, sand, and bricks in Rawalpindi.
According to market reports, the estimated cost of constructing a five-marla double-storey house has risen by a whopping Rs0.8 million.
The prices of building materials have seen a substantial hike, with good quality bricks now costing between Rs15,000 to Rs16,000 per trolley. Sand is being sold at Rs10,000 per trolley, while gravel costs Rs9,950 per trolley. Cement prices have also skyrocketed, with a tonne now costing Rs260,000, and a cement sack priced at Rs1,275.
Furthermore, the cost of doors, windows, and main gates has increased significantly. The price of a door and window has risen from Rs10,000 to Rs13,000, while the main gate now costs between Rs80,000 and Rs150,000.
Plumbing materials have also seen a massive price hike, with the cost of materials for a washroom increasing from Rs80,000 to Rs1 million. Similarly, plumbing materials for a kitchen now cost between Rs55,000 to Rs90,000. Electrical materials and labour costs have also risen, with the labour cost increasing from Rs0.1 million to Rs0.3 million per five-marla house.
The daily wage of labourers has also seen an increase, from Rs1,200 to Rs1,300, while the daily wage of masons has reached Rs2,500.
Raheel Chaudhary, Secretary General of the Bhatta Khusht Association, expressed concerns over the impact of various restrictions on the kiln business. Out of 260 kilns in the Rawalpindi district, 21 have already been closed, and this trend continues. Chaudhary emphasised the need for relief and relaxation of restrictions, suggesting that kiln owners should be allowed to manage smoke removal without external interference.
The building industry is facing numerous challenges, including taxes and sales tax on every sector of building materials. This has resulted in a continuous increase in prices instead of a decrease. He said the industry is in dire need of support, and declaring it a disaster and providing packages and tax waivers could help revive it. “A thriving building industry would also boost 40 related industries in the country, leading to overall development.”
He further said the construction sector is facing unprecedented challenges due to the surge in building material prices. “Urgent measures are needed to address this issue and provide relief to the industry, labourers, and consumers alike.”
Published in The Express Tribune, May 15th, 2024.