GIHED asks govt to check growing construction cost

Ahmedabad, 6 September 2012

The Gujarat Institute of Housing & Estate Developers (GIHED) which represents the construction fraternity today sought government’s intervention to check escalating prices of cement, which have shot up by Rs 70-85 per bag in last few months. GIHED Secretary Ashish Patel said the hike will be passed on to end users, and in that case housing projects in Gujarat may become costlier by 15 per cent. Input costs of material and labour are other areas contributing to this situation, he said.

The industry body has demanded a higher Floor Space Index (FSI) in Ahmedabad from the state government to spur vertical growth and help its members absorb price hike. According to GIHED, against a housing demand of 1.45 lakh units in Ahmedabad, the supply is mere 27,000 units.

The per square feet construction cost has almost doubled from Rs 700 in 2009. The sand prices have also risen by 100 per cent in last three years, Patel said, adding the labour cost has shot up by 155 to 180 per cent across various categories since 2009.