By Harsimran K. Kalra : The global financial doldrums has had a significant effect on the construction activities. Construction is an essential part of any country’s infrastructure and industrial development. It is the second largest economic activity next to agriculture. Even though the real estate scenario in India is witnessing a slump, immovable property prices are stagnant in the state.
Despite the escalating property prices and skyrocketing interest on home loans, the demand for real estate has not gone down. Contesting this claim, Gurpreet Singh of Propertyvertical.com says that the real estate sector in UT has registered a drop in sales by 30 per cent in the last few months.
The construction cost has not moved in any direction. It is same as that of last year. In the same period, bricks prices have gone up by 33-35%, while the cost of steel and cement has come down a little as compared to the last year’s prices. The labour rates have also escalated upto 5-10% .
In fact, this is considered to be the best time to buy property. “Buyers waiting for real estate prices to scale down could miss the opportunity as prices were only set to go up further”, said Gurpreet Singh, Sales Manager, Propertyvertical. In fact, there could be further increase if steel and cement prices shoot up. The analyst considered this as the right time for the genuine buyer to invest in Chandigarh as there are higher possibility of good negotiations as compared to the outrageous prices in the year 2005-06, and was unimaginable for them to invest in the right property.
The table below shows the differences in the prices of various things that rules out the total construction cost:
Name 2009 2008 2007
Aggregate: two types—20mm & 40mm Rs 14.50-17 per cubic ft Rs 14-16 per cubic ft Rs 14-16 per cubic ft
Sand: two types—core sand & simple sand Rs 10-11 per cubic ft Rs 11 per cubic ft Rs 11 per cubic ft
TMT Steel Rs 31-32 per kg Rs 35-38 per kg Rs 35-38 per kg
Cement Rs 230 per bag Rs 235-240 per bag Rs 235-240 per bag
Marble Rs 25-50 per sq ft Rs 25-50 per sq ft Rs 25-50 per sq ft
Bricks Rs 2500-2800 per 1000 bricks Rs 1600-1800 per 1000 bricks Rs 1600-1800 per 1000 bricks
Labour rate Rs 200-300 mason & 180-200 labour Rs 190-270 mason & 170-190 labour Rs 190-270 mason & 170-190 labour
Plumbing Rs 200-300 mason & 180-200 labour Rs 190-270 mason & 170-190 labour Rs 190-270 mason & 170-190 labour
Steel Binder Rs 3 per kg Rs 3 per kg Rs 3 per kg
Property meter in city:
• Construction cost: Rs 1000 per sq ft
• Selling Price: Rs 1600 per sq ft
• Increase in construction cost: stagnant in last two years