Constructions costs have escalated significantly in Punjab over the last year, in step with booming real estate prices.
According to some estimates, construction costs have risen by 30% to 40% within just 12 months.
A look at the cost of raw materials provides a clear picture. The price of a bag of cement has gone up by 60% to Rs. 225 per bag.
The price of A-class bricks has risen by 33% to Rs.2,400 per thousand bricks than the normal bricks.
The price of sand has gone up 55% and the price of steel has risen by 27% to Rs. 2,800 per tonne.
Rising construction costs, high land prices, and higher interest rates are definitely denting the plans of many to build their own homes.
However, industry experts expect the boom in real estate in these states to continue.
Punjab and Haryana are expected to get the lion's share of a projected Rs 130,000 crore investment in real estate in North India by 2010.
A major chunk of this investment will go towards the commercial sector.
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