Speculation and demand & supply gaps are sending real estate prices spiralling upwards. But prices of cement too are adding to the boom. In 2006, cement prices continued their journey through the roof, leading to ever increasing construction costs. The result: a burgeoning real estate industry. In the past one year, the cost of construction has increased by 10 to 12 percent as the average cement prices in north India is close to Rs 210 per bag, which grew by about Rs 25 per bag in one year. Says Vikaas Ahluwalia, director of Ahluwalia Contracts, "In the past two years, cement prices across the country have gone up to unprecedented levels. This has already started to show an impact on the construction sector. Construction COST have gone up by about 30 to 35 percent."
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