Real estate developers to strike on Mon

Action to protest against rise in cement and steel prices.

The Confederation of Real Estate Developers Association of India (CREDAI), which has member associations in 18 states and over 3,500 developers attached to it, also said construction costs could go up almost 16 per cent in the coming months.

Kumar Gera, president, CREDAI, said, "Real estate developers all over the country are going on a strike on Monday in order to bring an adequate focus to the issue of rising cement and steel prices."

He also indicated that if there was no response from the authorities concerned to the strike, it could continue or some other method of protest would be adopted to tackle the issue.

Cement prices in Gujarat had gone up to Rs 165 per 50 kg bag from Rs 95, in the last 3-4 months, while steel costs had escalated to Rs 28,000 per tonne from Rs 19,500 per tonne, leading to tremendous pressures on builders as cement and steel account for 33 per cent of the total construction costs, he said.

Builders in the other parts of the country have also been affected and are now contemplating passing the burden on to the consumers by increasing construction costs.

Gera said, "Builders will be compelled to increase construction prices almost proportionately. Depending upon the area, construction costs could go up by 5-16 per cent."

Every 50 per cent increase in the price of steel or cement could lead to a Rs 75-Rs 100 rise in the cost of developing residential property and could lead to a 8-10 per cent rise in the cost of flats.

Meanwhile, in Gujarat, CREDAI's member association - the Federation of Real Estate Developers Association of Gujarat -- has been on a construction strike since March 5 and the the strike by CREDAI next week comes in support of this, Gera said.