Reasons why Construction price on Raise in Pakistan and the difference

Construction prices have been rising in Pakistan on a permanent basis, as it has affected the price of houses as well as damaged the real estate business. Yes, globally, the price of houses and apartments has been rising, like in the US and UAE, but it is due to demand and innovation, not artificial inflation. In Pakistan, the difference is that the demand has shrunk due to IMF demands for the government of Pakistan to increase taxes, and the FBR could not find any alternative ways to increase taxes. Therefore, the government of Pakistan has no choice but to meet those demands. However, today it's about why the construction cost to build a house or apartment is rising in Pakistan. 

The cost of developing a house or making it has gone up sharply in the last couple of years. Good-quality bricks for the construction of houses in Pakistan are now selling for PKR 15,000 to PKR 16,000 per trolley. It is reported that sand is priced at around PKR 10,000 per trolley, and gravel costs around PKR 9,950. Moreover, cement prices have also seen a massive price increase, as a ton now costs PKR 260,000, and a single sack of cement is priced at PKR 1,275.

There are other products whose prices have increased as well, like items like doors, windows, and gates, which have also witnessed a massive increase. A couple of years back, a basic door or window cost around PKR 10,000 and is now around PKR 13,000. Additionally, it is reported the main gates are now more expensive compared to both of the above, ranging from PKR 80,000 to as high as PKR 150,000, which again depends on size and quality.

Plumbing materials have also been on the rise in Pakistan. Fitting out a single washroom, which in recent years used to cost around PKR 80,000, can now run up to PKR 1 million, which is the biggest price increase of all. Kitchen setups have also seen major price rises, as they now cost from PKR 55,000 to PKR 90,000 (this depends on quality, design, and size). Electrical materials and labor have also seen a sharp cost rise as well, with labor costs for building a five-marla house witnessing a rise from PKR 100,000 to PKR 300,000.

Daily wages have also increased compared to recent years, as laborers are now earning between PKR 1200 and PKR 1500 a day, and masons are making up to PKR 2,500 on a daily basis.