Price of construction steel or TMT bars had recently touched Rs 45,000 a tonne in some markets, which was at least 30-40 per cent higher than the rate in the pre-COVID period.
“The steel price rise is hurting the real estate companies as the property prices are under pressure. The additional cost will result in a shrink of gross margin by 5-6 per cent,” Bengal Peerless Housing Development Company CEO Ketan Sengupta told .
Real estate industry body Credai Bengal president Nandu Belani said the spurt in steel prices will reduce the margin by 4-5 per cent, which is quite high for the sector.
Presently, only the residential sector has seen a revival of demand, while the commercial and industrial segment is still reeling under pressure, and the high cost will discourage builders to delay the launch of new projects, the officials said.
“We are not planning to launch new projects due to market condition and will review the situation by the end of the fiscal and then take a call,” Sengupta added.