Welcome, Guest    
 
Login  Contact Us RSS Feeds
Home
  Add Property                
Register Free to find a Perfect life partner In AnytimeMatrimony | Equated Monthly Installment(EMI) Calculator | Stamp Duty Calculator | Area Conversion Calculator | Know answer for your Taxation query | Ask Legal Advice @ Free of cost | Vaastu Tips
FAQ Sitemap
 
Newsletter Signup
Subscribe for our property news letter



 
 
News Search
Type a keyword to search.



[OR]

Select a city to search property news.


 
 
News Archieves
September 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
September 2008
June 2008
February 2008
January 2008
December 2007
November 2007
 
 
External Links
 ICICI Home Loans
 LIC Housing
 HDFC Home Loans
 SBI Home Loans
 Axis Bank Home Loans
 Tamilnadu Govt Links
adProperty News

     
 
Recession restores confidence in buyers
Source : The Hindu Property Plus Published On : 2009-03-10 City : Chennai

Steady drop in prices of cement and steel, there is promise for lower and middle income group, writes Hema Vijay

Much to the relief of the home buyers, 2008 has seen a fall in prices of materials leading to drop in construction costs. It looks; economic down turn has thrown up an opportunity. With the cost of labour and price of land also coming down, many hope that the housing could now get within the reach of lower and middle income groups. What is now required is intelligent utilization of the situation and careful planning.

Material hope

Prices of steel and cement are coming down, because of demand supply dynamics, with demand now at a low the world over. “In 2007, it was Rs. 23/kg; it went up to 48/kg in 2008, and we had to purchase steel at the peak rate because of ongoing projects”, points out M. Ganesan, a building trade professional. “The price of steel has now come down to around Rs. 33/kg from its peak of Rs. 60 four months back”, says Sapp any Pillai, Vice Chairman, Institution of Valuers. This means that products like hinges, GI pipes grills, etc too would come down. The price of steel is expected to fall even further.

And with lowering petroleum prices, the cost of PVC products too is expected to fall. As for bricks, Sapp any Pillai points out, “The cost of bricks started at Rs. 3.75 in the beginning of 2008, but hovered around the same rate (at Rs. 4 to 4.25 per brick) throughout most of last year, and has reached a stand-still now”. After the rain, the cost of bricks would come down further, he says. Cement remained relatively stable at between Rs. 260-275/bag last year; but cement prices are expected to fall this year because of lack of demand. The cost of sand didn’t change much throughout last year and stood at Rs. 18-20/cubic foot. Likewise, blue metal, glass and wood didn’t see much of a cost fluctuation last year.

Because of the meltdown, engineers and skilled workers would be available at reduced salary they had charged six months back; workers who had charged Rs. 300-400 a day would now be available at Rs. 200 a day. And since labour costs contribute as much as 30% of the total construction costs, this is a highly significant factor. In all, the cost of construction has dropped by Rs.100 to Rs.150 per sq.ft, says Mr.Pillai. Baring a few areas within the city, land price can also be expected to fall by 15 percent, adds R. Kannan of the Infratech Infrastructure Services. It looks the cost of finished housing should soon become affordable to many.

New technologies

“Surplus skilled laborers could be absorbed by the building industry to construct houses with state of art technology, that take less time and consequently incur less cost”, suggests R. Kannan. For instance, the pre-fab and pre-cast houses, which were not taken up on a large scale earlier, because of shortage of skilled laborers qualified enough to handle the technology.

Pre-fab houses indicate houses whose frames are fabricated elsewhere and assembled on site, along with board-walls of cement and gypsum-concrete. Pre-cast houses use aerated and light weight concrete, which are cast elsewhere and moved to the construction site. Pre-cast and pre-fab construction is the trend worldwide now, though it hasn’t caught on much in India so far, with the exception of commercial structures like factories. Now, with a skilled labour pool available, the housing sector could take advantage of this technology.

This technology will work well in large scale housing, because with volumes, the economy of scale would be accentuated.

These pre-fab and pre-cast structures also have a green charm to them because they consist of more of material like fly ash and gypsum (which is a waste product of the fertilizer industry) and less on cement. And since such houses can be built in a quarter of the time it takes for building in the conventional style, it makes the construction faster, and consequentially, all the more economical.

As Gopinath Rao, former president, National Institute of Valuers muses, “Hard times are ahead in the construction industry”. But every challenge holds out an opportunity too. While the impetus last year came from the premium segment of housing, this year, affordable housing could hog the show, provided the design is frill-free and sensible.

    Back
 
     

 

More on Anytimeproperty
 
City Based Properties
 
Useful Tools Property News Search Property Calculators Others
© 2017 Any Time Property All Rights Reserved. Home | About Us | Advertise | Testimonials | Help & Support | Contact Us | Careers | FAQ | Feedback | Sitemap
Privacy Policy | Terms and Conditions Developed by Snick Technologies