TS realtors to strike on April 4 against high raw material cost

Telangana real estate bodies said on Friday that they will stop work for a day on April 4 to register their protest against the steep hike in prices of raw materials like steel, aluminium, cement, and PVC.

Stating that the industry, which was just recovering from the devastating COVID pandemic, is in no position to absorb the enhanced costs anymore, they appealed to both the Central and State governments to provide relief through GST and input credits besides reducing the stamp duties to boost customer sentiment.

‘The Russia-Ukraine war has severely impacted the supply chains globally, affecting the supply of raw materials and increasing costs. Increased cost of diesel is further causing an inflationary impact. We have tried to absorb the cost to remain competitive. However, with the current spike, we may need to consider stopping work on the projects till the prices come down or pass the increased cost to customers,’ said president of the Confederation of Real Estate Developers’ Associations of India (CREDAI)-Hyderabad P. Rama Krishna Rao at a press conference.

General secretary V. Rajashekar Reddy pointed out that steel price has doubled from around ₹40,000 – ₹45,000 per tonne last year to ₹85,000 to ₹90,000, aluminum by 45-50%, and even cement prices are on an upward spiral, hence there will be a 10-15% rise in costs overall which has to be passed on to the consumer.

CREDAI-TS chairman Ch. Ramchandra Reddy said real estate industry is the second largest employer and a major contributor to the GDP, therefore, if the projects are deferred it will have a direct impact on the livelihoods and growth of the economy. ‘The State Government can consider reverting to the old regime of stamp duties on projects to boost the market sentiments in these trying times,’ suggested president D. Murali Krishna Reddy.

TREDA president Sunil Chandra Reddy, Telangana Builders’ Federation president C Prabhakar Rao, and Telangana Developers’ Association president G.V. Rao, also spoke on the travails of the industry and how the impact will be across the board from luxury to affordable housing.

Earlier, representatives of CREDAI along with those of Telangana Real Estate Developers’ Association (TREDA), Telangana Builders Federation (TBF), and Telangana Developers Association (TDA) met to discuss steps to overcome the challenges of high raw material costs as close to 600 developers are said to have been affected and the impact will also be on delivery to buyers.