Building homes in MP becomes 35% costlier:Cement, bricks and tiles prices surge sharply amid West Asia war

The impact of the Iran-Israel and America war is no longer limited to the common man’s kitchen. It is also weighing heavily on the dream of owning a home. The surge in prices of construction materials due to the war has increased the worries of the middle class. Bhaskar’s investigation revealed that prices of paint, tiles, wiring, bathroom fittings, pipe fittings, cement and steel bars have increased. This has raised the cost of building a house on one thousand square feet by an average of 30 to 35 percent. According to experts, there is a possibility of further increase. Understand from this case study how the cost of building a house has increased… Cost increased by Rs 3.5 lakh rupees for 1,000 square feet Ramesh Kumar, an employee of a private company in Indore, had planned to build a 1000 square feet house last year. At that time, the estimated cost was Rs 12.5 lakh. But by the time it reached the final stage of construction, this cost had increased to more than Rs 16 lakh. That means an additional burden of about Rs 3.5 lakh came upon him. Now know what impact was there on which sector 1. Tiles and sanitary: Morbi plants closed, supply chain broken
About 90% of the plants in Morbi (Gujarat), which supply 80% of the country’s tiles, are on the verge of closure. Shortage of raw materials and rising gas prices have halted production. The impact of this is 2×4 size tiles, which were available for Rs 32, have now reached Rs 45. According to Prem Maheshwari, Secretary of Tiles and Sanitary Ware Traders Association, if the war continues, there could be another surge of 20-30 percent in prices in the next 15 days. Customers are having to choose from available stock only. 2. Electrical fittings – Copper and aluminum prices increased by 35% According to Jitendra Ramnani, President of Maharani Road Trade Association, the raw material crisis has made electrical goods 35% more expensive. A bundle of one millimetre wire has increased from Rs 990 to Rs 1560. The prices of fans, LEDs and switch plates have increased by an average of Rs 400 to Rs 500. According to Ramnani, work that was previously being done for Rs 10 lakhs is now costing Rs 15 lakhs. Copper and aluminum prices are rising. There is a shortage of cash flow in the market. Prices will increase further in the coming days. 3. Impact of crude oil and brass on plumbing and bathroom fittings PVC is directly related to crude oil. As oil has become expensive, pipes have also become expensive. CPVC pipes that cost Rs 350 are now available for Rs 490. Due to halted imports, prices of taps and diverters have increased by 25% to 40%. According to Sunil Goyal, former president of the Sanitary Association, bathroom fittings are made from brass and its raw material is limited in the country. Due to the war, rates of brass items have increased by approximately 25 percent. Rates of PVC pipes and fittings have also increased. 4. Painting work has also become expensive According to Gulam Ali, a paint trader from Siyaganj, Indore, raw material rates are increasing daily. At the company level, premium segment product rates have increased by approximately 50 rupees per litre. Along with the rate increase, supply is also short. Supply is not being fulfilled. ‘Double Blow’ on common man’s pocket The GST calculation on cement is also troubling customers. According to traders, despite GST being reduced from 28% to 18%, prices have returned to the same level. This means the benefit of reduced tax has been swallowed by inflation. If building a house, keep a 30 percent buffer There is currently a ‘wait and watch’ situation in Indore’s markets. Traders are worried due to lack of cash flow in the market, and customers’ home loans and budgets are falling short. People planning to build a house should keep a 30 percent ‘buffer’ in their budget, otherwise work may need to be halted during finishing.