Construction costs have shot up here due to spiralling raw material prices, affecting workers and the public.
A property promoter said that taking into account the taxes and the raw material prices, the construction cost works out to more than ₹ 2,000 a sq.ft now.
According to Paneerselvam, chairman of Builders Association of India (Coimbatore chapter), works started last week at sites where labourers and materials were available.
While availability of construction materials is not a problem, the hike in prices has become a matter of concern. The prices of construction materials are up nearly 20 % during the recent months. In the last one year, construction costs have gone up by 40 %. While the demand is subdued, workers are also demanding higher wages. The builders may be able to negotiate for cost escalation with some clients. But, the public who are constructing smaller buildings are the worst affected, he said.
K. Ravi, general secretary of Tamil Nadu AITUC Construction Workers Union, said in a press release that the uncontrolled prices of construction materials were affecting lakhs of construction workers as the construction costs were up and becoming unaffordable. So the jobs of workers were at stake. The prices of cement, sand, blue metal, bricks and steel had shot up.
Compared to Andhra Pradesh, the price of a sack of cement is ₹120 higher in Tamil Nadu. The prices should be restored at least to pre-election level, he said.
