123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Real-Estate-and-Foreclosure >> View Article

Impact On Real Estate Sector As Cement Price Hikes

By Expert Author: Stephen Raj

What is cement?

Cement is one of the oldest building materials in the construction industry. It is a fine powder which, when mixed with water, hardens in a few days into a strong and solid material. Therefore, it is widely used for real estate construction projects. However, cement is not all that strong when it comes to supporting its own weight. That’s why a rebar is used before the cement is poured. This makes the cement much stronger and a good construction material.

The demand for cement is in the real estate sector, infrastructure and industry expansion sectors. Out of these, the major demand is from the real estate sector. The real estate sector and cement industry is closely related and any hike in cement prices will directly affect the real estate sector.

Cement manufacturers in India
• ACC Limited, Mumbai
• Ultratech Cement, Mumbai
• Ambuja Cement, Mumbai
• Jaypee Cement, Noida
• India Cement, Chennai
• Ramco Cement, Chennai
• JK Cement, New Delhi

Uses of Cement
Cement is used for the following work:
• construction industry: to build floors, bricks, plaster, columns, roofing, beams, piles, mortar, panels,
• transport industry: to build roads, crossings, bridges, pathways, viaducts, stabilization, runways, parking, sleepers, tunnels
• water: weirs, culverts, kerbing, pipes, drains, dams, pools, canals, tanks,
• civil: silos, warehousing, docks, fencing retaining walls, piers, poles, pylons
• agriculture industry: to build housing, irrigation, buildings, feedlots,

Reason of price hike

Real estate is witnessing a hike in the cement price by over 30% in a month to Rs. 275 for a 50 kg bag. This trend is likely to continue, and may reach Rs. 325 this festive season, making it difficult for builders to construct. This price hike will also impact the common man, as he would not be able to purchase or construct his own dream house. This continuous price rise is affecting the real estate sector. As the cost of construction goes up, sales price would definitely increase and the customers may have to pay more, as costs of all inputs like manual labor and building material have also gone up. In the prevailing market conditions, increase in cement and input cost would harm the interest of business and consumers.

Impact of price hike

Due to the price hike in cement, the construction industry has come to a standstill. As the cement manufacturing companies have increased the price by Rs. 35-65 for a 50 kg bag, the construction cost has increased by a flat 15%. Kochi is one of the most hit areas, as the building activity is on the higher side here. Developers’ apex body Confederation of Real Estate Developer’s Association of India (CREDAI) believes that a cement lobby is active and has demanded an intervention of the government to resolve the crisis.

Cement is a basic raw material for the construction industry and this continuous increase in price has proved to be good for the cement industry as the stock prices of cement companies are increasing.

Major developers in the cement industry feel that the cement price hike would be a dampener for the customers as they will be feeling the brunt of this hike. As per the developers, not only the cement but the price of other construction material are also on the higher side; and in the end, it is the customer who will be on the losing side.

Even though the real estate sector is witnessing a slow down, residential demand is still steady and growing as people need a house to live in.

Total Views: 46Word Count: 562See All articles From Author

Real Estate and Foreclosure Articles

1. Real Estate In Redlands California Helps In Buying And Selling Houses
Author: Vikram Kumar

2. Find The Best Assistance From Keller Williams Redlands California Regarding Sale Of Houses
Author: Vikram Kumar

3. Buying And Selling Homes Made Easy With Realtor In Redlands California
Author: Vikram Kumar

4. Redlands Investment Property: Just The Way You Want It!
Author: Vikram Kumar

5. The Best Real Estate Agent In Redlands, California
Author: Vikram Kumar

6. Tata Value Homes Sector 150 Noida
Author: Tata Housing Noida Sector 150

7. Real Estate Agents In Redlands California Help You In Relocation
Author: Vikram Kumar

8. Factors To Consider When Calculating Arv For A Fix And Flip
Author: WalnutFinance

9. Luxury Home Designs Sydney- The Best Home Design Company
Author: Leila Adam

10. Finding A Down Payment For Your Real Estate Investment
Author: WalnutFinance

11. Ajnara Group – Luxury Housing Developers
Author: Nandini

12. How To Find Best Realtors In Cape Cod Massachusetts
Author: Robert Jackman

13. Gaur Siddhartham Excellent Connectivity Facility
Author: Amit Sharma

14. Deferred Payment Has Been The Latest Trend Attracting Prospective Buyers To Maradu. In All Of Kochi
Author: Tripti

15. Deen Dayal Jan Awas Yojana (ddjay) Affordable Housing Scheme
Author: gaurav seth


Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: