Building costs hit record highs

Cost of a five-marla house jumps to Rs130 million, govt projects double in price

RAWALPINDI:

The outgoing year 2025 proved disastrous in terms of building material prices, which surged to the highest levels in the country's history.

Due to the unprecedented increase, the cost of constructing a fully completed five-marla house rose from Rs8–8.5 million to around Rs13.5 million.

The continuous monthly increase in material prices has also pushed government project rates up by nearly 100 per cent, causing heavy losses to the national exchequer.

In the open market, the price of quality bricks reached Rs18,000 per 1,000, sand Rs11,500 per trolley, gravel Rs13,000 per trolley, cement Rs14,500 per bag, steel bars Rs260,000 per ton, mason wages Rs2,500 to Rs2,700, and daily labour wages Rs1,500.

Over the past year alone, cement prices increased by Rs790 per bag, steel by Rs70,000 per ton, gravel by Rs3,500, and sand by Rs2,960. These prices are expected to rise further in 2026.

Due to skyrocketing costs, citizens have started using old bricks and replacing cement with mud mortar for reconstruction. In many buildings, 60 per cent cement-sand masonry and 40 per cent mud masonry is now being used, with lime also added to the mud mixture.

The sharp rise in prices has increased the estimated cost of all new development projects by 60 to 70 per cent.

Contractor Gul Nawaz Abbasi said he has been constructing and selling small houses for the past 35 years. Earlier, three or two-and-a-half marla houses could be completed for Rs4–4.5 million and sold easily for Rs6.5–7 million. Now, similar double-storey houses cost Rs7–8 million to build and take six months to a year to sell at Rs10 million.