Vizag builders put new projects on hold
Cite high cement, sand prices as reason
Feb 24, 2015
Source : Business Standard
B Raja Srinivas, chairman of Credai, Vizag Chapter


Visakhapatnam: Apartment builders in Visakhapatnam are postponing their new ventures due to a hike in sand and cement prices.

Though local builders had secured all necessary approvals for the construction of more than 100 apartments in and around the city some four months ago, they are yet initiate any work on the projects due to the uncertainty mainly in sand and cement prices, B Raja Srinivas, chairman of Credai, Vizag Chapter, told Business Standard.

The increase in cement and sand prices had eroded their margins by 30 per cent on the existing projects. The builders say if the situation continues they may have to raise the price of their projects by Rs 250-300 per sft.

Some two months ago, cement was available at Rs 230 per bag and now it has climbed to over Rs 280.

Prior to the new sand policy in Andhra Pradesh, sand was available at Rs 17,000-18,000 per load (5.5 units) but now the same is costing Rs 30,000-32,000 per load, he said.

Currently, more than 5,000 units (flats) are under construction. The builders complain that the buyers are not willing to pay the difference in construction (Rs 250-300 per sft) cost in spite of the clause in the agreement.

The Credai has represented to the government on sand and cement prices. "Most of the builders have decided to start new ventures in the next one or two months. Meantime, if sand and cement prices do not come down, we will increase the price of the flats by Rs 250-400 per sft depending on the locations," he said.

Latest Realty News

Feb 24, 2015
Raipur: Credai Chhattisgarh is going to organize STATECON 2015
Feb 24, 2015
NEW DELHI: The government has directed civic agencies and district authorities not to allow any fresh unauthorized construction
Feb 24, 2015
MUMBAI: The state government has offered its 19 lakh employees home loans between Rs 20 and 50 lakh, depending upon the category of the city or district they work in
Feb 24, 2015
NEW DELHI: Delhi Chief Minister Arvind Kejriwal today joined Anna Hazare on his second day of protest against the contentious land ordinance
Feb 24, 2015
NEW DELHI: The controversial Land Acquisition Bill was introduced by the government in the Lok Sabha today
Feb 24, 2015
Mumbai: State Bank of India (SBI)wants the government to increase the upper limit for interest subvention (subsidy) of home loans from Rs 15 lakh to Rs 25 lakh
Feb 24, 2015
New Delhi: NDA has held consultations on how to accommodate views critical of its proposed changes to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
Feb 24, 2015
NEW DELHI: Private equity (PE) investment in the realty sector jumped over two-fold to Rs 15,410 crore last year
Feb 24, 2015
Real Estate Sector has all hope for a reformist and bold budget this time along with expectations for a slash in Repo rate from RBI, says Mr Rohtas Goel, CMD of Omaxe Ltd
Feb 23, 2015
NEW DELHI: Realty major DLF plans to divest around 50 per cent stake each in four new housing projects

Latest Realty News Of State

Realty Talk's