Flood and construction material prices

[nauman.ahmad_1 (Nauman Ahmad)]

Salam,
as everyone is aware with the current flood like situation in northern and southern side. I wanted to as experts if this is going to efefct property market especially the construction business. I have been holding my savings for long and been waiting to construct my house once the construction material prices stabalises. but given the condition, I think it will not stabalise right? what is ur opinion? will this whole situation effect the real estate marekt as well?

I am aware that the flood has been devastating for the people of Pakistan and many have lost their lives and livelihood and my heart goes out to them and for their famalies. i hope the question would not be considered as insensitive. but those who are already in knee deep into their construction and house building have also started to panic since they cant decide what to do next. I am hoping this question and the replies under it will provide some clarity to the people.

[isloo1]

It will not affect much on gray structure, as the five basic ingredients (cement, steel, bricks, gravel and sand) are already at peak. My assessment is that flood will ease demand for this material, therefore, no big jump is expected. Plus, if rupee comes down after IMF deal, then prices may come down a bit.

Finishing material is a different story. As, recently taxes have increased on imported fittings and materials, so that will give rise to local product prices as well.

But as a rule of thumb, don’t wait too long, otherwise, you’ll never catch-up. Whenever you build, it will still be cheaper as compared to future rates.

[nauman.ahmad_1 (Nauman Ahmad)]

i was reading a report on construction material and construction activities by Abad group, they say there is a 35% decrease in cement consumption and almost similar reduction in Steel consumption due to rains and flood. now how much this will transalte into market reduction of prices is not known. But i Think the material prices will go down including the finishing material since, after IMF programme, the Dollar is likely to go down as well, which I hope is true.