Despite higher costs, construction works in full swing

Hyderabad: Despite steep rise in building raw material prices and volatility, the construction works are undergoing in full swing and the demand for building material remain intact. However, there is a seasonal slowdown in construction activity due to the extended monsoon phase. Bizz Buzz spoke to several retailers of the building materials to ascertain the current situation in Hyderabad real estate market.

The construction sector, which contributes to development of infrastructure as well as housing sectors, is witnessing an encouraging demand. According to a majority section of both online and offline building material vendors in the city, the prices remain volatile, but the consumers are still keen on their property purchasing plans, and this is keeping the demand up.

Sohail Ansari, owner of SK Ansari Materials Supplier at Langarhouz, said: "The sector was first amongst all sectors to see a quick recovery after the pandemic induced slowdown. Now, the business is going well, and the costs of materials have seen a rise. There is a slight down-turn for the last few months due to rains. A short term slowdown occurs normally every year during this season."

According to the representatives of online construction material stores Builders9 and BuilderMart, this is a usual slowdown due to the rainy season and price volatility. However, the construction works never stop and so does the demand. The prices may have increased slightly after the pandemic, but the recovery and demand have normalised, they said.

Few other dealers emphasised on growing input costs and reducing margins. As per a construction material supplier at Attapur, the business is going well in spite of the prices surged up since the pandemic outbreak. These days, there is a rise in investment and risk factors, which are causing the profits to shrink accordingly.

Waseem Shaik, Owner of Shaiks Sand & Gravel Supplier at Langarhouz, said: "The sand and gravel business is dull as of now and I hope it will be recovering in near future. The prices have seen a rise in recent past. Our profits are shrinking due to overall inflation in the market." Krishna Rao, Owner of Sri Saibaba Building Materials at Borabanda, also said that recovery after pandemic was quite good.

Except the seasonal rate hike of river sand, the prices of all other building materials are normal. As a part of the supply chain, the material vendors cater to the ongoing process of housing and infrastructural developments. They know the pulse of the construction industry across various markets. They indicate that a lot of progress is happening in the country.

The construction sector plays a pivotal role in any region, as it contributes substantially towards the holistic development of the nation by creating not only physical infrastructure, but also the accompanying economic opportunities that boost businesses and provide jobs, and thus supporting many individuals and families to survive and grow.

After agriculture, the infrastructure industry is the second largest employer in India. The construction sector in India employs over 51 million people and contributes nine per cent to the India's GDP. It is anticipated that the sector's contribution to GDP may increase to 15 per cent by 2030, thereby navigating India to become the third largest construction market globally.