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Housing projects likely to become expensive in Gujarat
SME News, Friday, Sep 07, 2012 11:27:16 AM IST
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AHMEDABAD: The housing projects in the state is expected to become dearer by 10-15% if the input costs of material and labour keeps on climbing, said Gujarat Institute of Housing & Estate Developers (GIHED).
GIHED has demanded the intervention of the administration to control the rising prices of cement, which they claim have jumped by Rs 70-85 per bag of 50 kg in the past two months.
GIHED Secretary Ashish Patel said, “We have sought government's intervention to check escalating prices of cement, which have shot up by Rs 70-85 per bag in last few months. In all likelihood, the per bag cement price of Rs 315 today is expected to reach Rs 350.”
The industry body has said that the per square feet construction cost has nearly doubled from Rs 700 in 2009, boosted by the jump in input cost of raw material and labour, which hit the profit margins of the real estate sector.
