HYDERABAD: Real estate companies in Telangana have announced a halt to work on April 4 as a mark of protest against the steep rise in the prices of cement, steel, aluminium and other construction material.
The Confederation of Real Estate Developers’ Associations of India (CREDAI) in association with the Telangana Real Estate Developers’ Association, Telangana Builders Federation and Telangana Developers Association has given the call for suspension of construction work on the appointed date.
According to CREDAI, around 5,000 builders are expected to participate in the strike. The increase in the price of construction materials like steel, aluminium and cement is too sudden and steep. It is having an adverse impact on construction activity. The cash flows and working capital have been affected severely. It is pushing up the cost of the projects, they said.
Realtors said that the steel price which was around Rs 40,000 to Rs 45,000 per tonne last year is now hovering around Rs 85,000 to Rs 90,000 mark. Aluminium prices have shot up by 45 to 50 per cent and even cement prices are on an upward spiral. This is affecting more than 600 developers, sending home prices up.
CREDAI Hyderabad president P Ramakrishna Rao said: “The developers have tried to absorb the hike in the price of raw materials to remain competitive. But with a spike in prices of raw materials continuing, we cannot bear the burden anymore. We may need to consider stopping work in future till the prices moderate. The property cost will go up in the range of 10-15 per cent on account of the hike in the cost of raw materials.”
Telangana Builders Federation president C Prabhakar Rao said: “We urge both the Centre and State to provide relief to the developers through GST and input credits and reduce stamp duty to improve customer sentiment.”
Delay in delivery of houses
The realtors say that the hike in raw materials is severely affecting more than 600 developers, sending home prices up and delaying the delivery of houses to buyers