Construction Material Prices Surge Across Tamil Nadu, Impacting Builders and Homebuyers

Tamil Nadu is witnessing a fresh surge in construction material prices, creating additional pressure on builders, developers and individuals constructing homes across the state. Industry stakeholders say the latest increase is being driven by higher fuel costs, supply chain disruptions and reduced availability of raw materials.

According to market sources, the prices of key construction materials such as jelly, M-sand and P-sand have increased by around ₹500 per unit in several districts. The revision comes at a time when the construction sector is already dealing with rising input costs and labour shortages.

A unit of jelly, which was previously sold at approximately ₹3,300, is now being traded at around ₹3,800. Similarly, M-sand prices have increased from about ₹4,000 per unit to nearly ₹4,500. P-sand, widely used for plastering and finishing works, has also registered a similar increase, moving from around ₹5,000 to ₹5,500 per unit.

Industry experts attribute the latest hike partly to the ongoing geopolitical tensions in West Asia. The conflict has affected fuel supplies from Gulf countries, leading to higher diesel and energy costs. Since transportation plays a major role in the supply of construction materials, the increase in fuel prices has directly impacted overall material costs.

Another major concern highlighted by industry participants is the decline in the number of operational stone quarries. Reduced production and supply constraints have added further pressure on prices across the state.

The impact of the increase is being felt across both large and small construction projects. Real estate developers are facing higher project costs, while individual homebuilders, particularly middle-income families, are finding it increasingly difficult to manage construction budgets. Contractors also warn that prolonged price increases could delay ongoing projects and affect new project launches.

Industry associations and transport operators have urged the Tamil Nadu government to intervene and take necessary measures to stabilise prices. Stakeholders believe that improving material availability and addressing supply bottlenecks could help ease cost pressures on the construction sector in the coming months.