Steel yourself

Waiting for a big correction to invest in real estate? Well, it’s not going to happen any time soon. That’s because prices of key inputs in housing have risen sharply in recent years. Last fortnight, we told you about cement. Another major input is steel, prices of which have also shot up.

Then
One ton of steel rods was priced at Rs 13,000 in 1998

Now
It is now priced at Rs 37,000, an increase of 184% in the past 10 years

Then
If prices of steel keep rising at the same rate, a ton of steel rods may cost Rs 1,05,080 in 2018

Steel is used extensively in construction—for reinforced pillars, ceilings, floors, plumbing, railings, grilles, staircases etc. Prospective buyers who have identified a property should go ahead and buy. Those planning to build a house should factor in higher costs of cement and steel while working out a budget