Delhi NCR: Along with steep rise in prices of cement, steel rods and other construction materials, the Indian realty industry has now another challenge to face. The rise in price of bricks. This does not come as a piece of good news for people planning to buy houses as this can mean houses may cost more now.
Previously bricks costed around Rs. 3,600 per thousand and now the price has escalated to Rs. 6,200 per thousand. The Ministry of Environment and Forests has issued a new norm that environment clearance is required for mining any land less than 5 hectares. Following this, most brick kilns have closed down resulting in the price hike. Previously, projects of area greater than 50 hectares were needed to get an environment clearance from the Ministry. The State Environment Impact Assessment Authority (SEIAA) gave clearances to projects with lesser than 50 hectares. SEIAA has written to the ministry of environment and forests requesting a simplification of norms to help the brick kilns.
It is a difficult situation for realty companies and developers who are keeping the best interest of their customers in their minds and are trying to keep the price of houses reasonable. Developers like the CHD Developers, who have their own small fly ash brick factory, would possibly have an easier time dealing with the problem. Fly ash bricks cost around Rs. 4,200 per thousand which is lesser than the present price of bricks and these bricks are also environment friendly.
Most contractors have stopped working as they cannot bear the loses. Bricks costing Rs. 5800, a week ago, will rise to Rs. 7000 per thousand in a fortnight, if the brick kilns remain closed.
Real estate sector has already received blows from rise in price of land, raw material and high interest rates. Now, with the hike in brick prices will make the state of affairs even worse unless the prices.