As we have seen from 2019 to 2022, the prices of houses have increased a lot, now what is the reason for this, we will see in this article

Due to the following reasons, the cost of building a house increases or the price of the house you are about to buy also increases.

Sudden demand

When the lockdown was lifted, the demand for the material suddenly increased by a huge margin and the supply for the same material wasn’t enough. As we all know when the supply is less and the demand is more, the rate for the product skyrockets.

Material cost in 2022

At the time of building a house, the cost of the material is up to 70 per cent,so the effect of the material cost is very high or less directly comes on the cost of building the house.

For example, the steel that you used to get for ₹ 43 to ₹ 46 per KG in 2020, today you have to pay ₹56 to ₹ 59 for it. Because of this high inflation, even building a small house is becoming very expensive.

Fuel(Petrol/Diesel) cost

In recent months the price of fuel has increased a lot and it has a direct effect on transport. As the transportation cost increases, the cost of the material also increases, and with that, the cost of labour also increases.

Labour cost 2022 

20% to 25% of your house construction budget is spent on labour charges. Due to the inflation, petrol price hike and shortage in manpower, the labour cost has increased a lot. Earlier the mechanic’s daily wage was up to ₹ 700, now it has hiked to about ₹ 900, and it is the same case with all the labour.

 Now it’s not only that steel, cement and labour prices have gone up but with that, all the items such as paint, sliding window, POP, and doors have also increased

These are some of the main areas due to which the house to build a house has increased in 2022.