Pakistan Property News: Construction material prices reaching new highs

Pakistan Property News: Construction material prices reaching new highs

* Despite marked decline in construction business, prices of bricks, cement, steel, sand and crush have been rising

By Shabbir Sarwar

LAHORE: Despite a recession in the real estate business, and heavy investment in the gold and banking sector, surprisingly the prices of construction materials are reaching new highs, Daily Times learnt on Tuesday.

It has become impossible for a common man to construct a home, with such expensive building material costs.

Although the construction business had recorded a three fold decline compared to the statistics of the last two years, the prices of five basic building materials, including bricks, cement, steel, sand and crush had been recorded at a steady hike, building experts and contractors said.

The price of bricks, the basic unit for constructing a house, had increased from Rs 3,400 to Rs 4,500 per 1,000 bricks, minus the carriage charges.

The price of a 50-kilogramme cement sack had increased from Rs 240 to Rs 340 during the last eight months, while the price of white cement had gone up by Rs 80. Earlier it was sold at Rs 520, but now it was being purchased at Rs 600.

Ordinary steel of grade 30 to 35 used in building roofs, basements and other projected structures, had also increased to Rs 60 from the previous price of Rs 52 per kg. The price of grade 40 steel had gone up to Rs 64 and grade 60 was being purchased at Rs 70 per kg in the market.

A sand trawler carrying 100 cubic feet of sand now costs between Rs 2,200 to Rs 2,400 compared to the previous year’s price of Rs 1,800 to 2,000.

Around 100 cubic feet of crush, a material, used in the construction of roofs, floors and sometimes concrete structures, such as building plazas and multi-storey buildings now costs between Rs 4,700 to 5,000 depending upon the quality.

Zahoor and Sons Builders CEO Mian Zaheer Ahmed said that building material prices had increased considerably compared to the figures of the last 8 months. “Although there is no heavy investment in the construction business and only genuine consumers come to the market to purchase building material, the prices have been increasing steadily,” he said. Adding that the decrease in demand could not lower prices in this sector.

Author: Lahore Estate