The best possible way is to use the outstanding material, further revealing the quality of both the material and the craftsmanship of their assembly.
Role of Construction Industry
The construction industry is one of the key factors in building a nation’s economy. The industry has a very wide impact on the socio-economic growth of developing countries. The construction and infrastructure boost the GDP (Gross Domestic Product) of a country. But it is important for us to understand the importance of construction material’s cost to complete a project on time.
Factors Involved in Price Hike for Construction Materials
The cost of construction material is half of the total cost of a construction project. Apart from that, the cost of building materials is affected by supply and demand. It is also influenced by the quantity and the quality of the material. It can vary from seller to seller. Some of the other factors involved in price hikes are Inflation, currency exchange, materials specifications, and availability of the demanded material. Usually, the projects face delays because of the mismanagement of material at the project site.
A Need of Sustainable Construction Projects
A project’s development is wholly dependent on the material but the price hike is a big challenge for delivering quality projects. We have seen the price hike for construction materials and its impact on the real estate sector. The fluctuation in pricing is one of the main threats for all the stakeholders including suppliers, contractors, and clients. In this regard, sustainable construction is demanded that can fulfill the current needs without compromising the future needs. Sustainable construction is only possible if the pricing is stabilized and lowered.
COVID 19 and the Construction Industry
The price of basic construction material like steel and cement have raised to almost 10%. One wave after another had a very negative influence on the overall construction industry. Although the sector tried to adapt a few modifications in order to stay afloat. Still, the steep jump in price hikes has become a key challenge for everyone. Even the developers find it difficult to offer any discounted prices. And on the customer’s side, a lot of them postponed the idea of construction during the pandemic due to various financial constraints and liquidity crunch.
A Developed and Digitalized Pakistan
The government’s encouragement for a better developed and digitalized Pakistan is another key driver in the growth and innovation of a new construction ecosystem and is believed to bring new heights. The budget for infrastructure and schemes like (Naya Pakistan Housing Scheme) for all using advanced construction methods is likely to boost Pakistan’s existing construction portfolio. The industry is expected to bounce back in the coming years. As the worst is left behind with a sustainable future ahead, with new possibilities, and new optimism.
So it was a short guide on price hik for construction materials and their impact on real estate sector. For more updates, you can visit www.liber.pk
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