Cost of bricks doubled: House rates to hike
Delhi-NCR: Owing to abrupt increase in brick rates, pricing of houses are likely to increase. It is time for those who are planning to buy their dream homes to rethink on the decision.
The price of thousand bricks has increased to Rs 6,200 from Rs 3,600, which is double the previous rate. The rise in rates of bricks is due to several brick kilns halting production of bricks opposing the new norms of procuring permission from the ministry of environment.
Bricks being one among the most important components for any building construction activity, this heavy increase in their rates will definitely affect the price of houses which are in the phase of construction.
Most of the developers have stopped the construction work hoping the rates will reduce to normal soon. However, few builders have pre planned the execution of their projects in such a way that they can somehow withstand these kind of emergencies. They are ready to look for options to reduce the burden on buyers.
The Noida Building Contractors Association requested the district magistrate for an early resolution of the problem so that the brick kilns start production. Most of the contractors have stopped work at the sites as they cannot afford the loss. The brick cost may only reduce if the brick kilns start working.
A couple of weeks ago, the price for 1000 bricks was around Rs 5,800 which has currently been hiked to Rs 6,200. If brick kilns do not start working any soon, the rates are expected to cross Rs 7,000.
Buyers are worried assuming that the cost of their under-construction flats would also be hiked because of increased construction cost.
Brick kiln operators have stopped brick production protesting the new norms, according to which environmental clearance is required even for mining in less than five hectares of land. They want to be exempted from obtaining permission from the ministry of environment for earth excavation work. The State Environment Impact Assessment Authority (SEIAA) has written to the ministry of environment and forests suggesting simplification of norms for brick kilns.
It is likely that the authorities may decide that clearance will be required for real estate projects having greater than 50 hectares and for projects less than 50 hectares, the SEIAA shall be empowered to give clearances.
Market experts observe that the rising brick cost has undoubtedly affected the real estate of India, which is already struggling with steep and steady rise in prices of cement, steel and other construction materials.
Click here for related forum discussion
Related Real Estate News:
Real estate to get a boost with RBI rate cut
Greater Noida real estate to grow with metro expansion
Residents oppose NPR project construction by HUDA
brick kilns, brick rates, Building construction, Construction work, Delhi NCR, Ministry of environment, Noida Building Contractors Association, pricing of houses, Real Estate of India, Real estate projects, State Environment Impact Assessment Authority, Under-construction flats
[...] Cost of bricks doubled: House rates to hike [...]
[...] Cost of bricks doubled: House rates to hike [...]