Delhi’s Building Material Prices Statistics

CEIC India Data Talk: The building material prices statistics of Delhi has been released in the CEIC Indian Premium Database covering over 30 common construction raw materials in the nine different districts of Delhi (Central, Northern, Southern, Eastern, Western, North-Eastern, South-Eastern, North-Western, and South-Western) along with separate statistics for building material costs in new Delhi. Construction materials covered include bricks (by quality), sand (for coarse, medium, and fine variants), cement (by types), and various other raw materials, including angle irons, round bars and steel sheets (by dimension). The dataset replaces a prior dataset providing a general overview of building material costs throughout Delhi. The Central Delhi district enjoys some of the lower prices, compared to neighbouring district, for various building materials, in particular bricks, sand, cement and angle iron. At the other end of the spectrum, building material prices are among the highest in the Western district of Delhi where the average price of Class-A bricks, for example, can be 25% higher than comparative brick prices in Central Delhi. In terms of auxiliary construction materials – electric fittings and sanitary wares, among others – prices are dearer in the Southern district of Delhi relative to its other districts. India’s construction industry took a hit from rising input prices during 2012, due to inflationary economic conditions and the subsequent rise in borrowing rates. These rising prices affected material and labour costs, the latter due to a shortage of skilled workers in the construction industry. These rising costs were compounded by more constrained lending from the financial institutions to the real estate sector, stemming from tightened credit requirements vis-à-vis other economic sectors. Construction loans accounted for an increasingly lower proportion of total industrial credit during the fiscal year ended March 2013, of 2.62% compared to 2.73% during the 2012 fiscal year and 3.11% in fiscal year 2011. Construction costs have since been flattening since the sharp increase from mid-2012 to mid-2013. Delhi’s construction cost index for building grew by just 7.06% year-on-year during July 2013 compared to 12.06% during the same month of the previous year (or a mere 0.10% on a month-on-month basis). The slower rise in construction costs has also helped to reduce growth in the housing price index to 32.72% year-on-year during the quarter ended March 2013 from 47.19% during the quarter ended September 2012 and 46.98% during the quarter ended December 2012. While declining growth in costs is welcome news for the construction industry, the net impact remains doubtful. Lowered construction costs have coincided with weaker consumer demand, making the purchase of large assets, such as property, less likely. Weaker consumer purchasing power and increased pessimism among building firms may require regulators or state authorities to breathe new life into the construction sector, particularly when weighed against the general economic downturn underway. Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. By Chan Yee Lui Google+ Author Profile - CEIC Analyst Back to Blog
6th September 2013 Delhi’s Building Material Prices Statistics

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