The construction sector in Guwahati is witnessing a disconcerting escalation in material prices, pushing both private builders and individual home-owners into a corner. What was already a capital-intensive industry has now turned increasingly unaffordable for many, with the past three to four months marking an alarming trend in cost hikes across key building materials. From cement and bricks to sand, stone chips, and steel rods—no element of the construction supply chain has been spared, prompting concerns over long-term impacts on the region’s infrastructure and housing market.
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Among the most noticeable hikes is the price of bricks, a fundamental component in nearly every building structure. Bricks, which earlier could be procured for around ₹8 per piece on bulk vehicle loads, are now priced between ₹10 and ₹12 apiece, with vehicular rates having moved to ₹8.50–₹9.50 per piece depending on location and supplier. This may appear incremental, but when scaled to thousands or even lakhs of bricks for medium- to large-scale construction, the cost difference becomes staggering. Local sellers attribute this to higher transportation and fuel charges, and an overall increase in labour wages.
Cement prices have also seen a sharp upward movement. A standard 50 kg bag now costs between ₹460 and ₹480 depending on the brand and dealer. Local cement brands tend to be slightly cheaper, but are often perceived to be of lesser quality than those produced by larger, nationally recognised companies. Cement dealers in the city report that fluctuating costs of raw materials like limestone and coal, along with logistics expenses, are driving the price volatility. "We used to get cement bags for under ₹400 until December last year, but now every shipment comes with a new rate," said a retail seller at Ganeshguri on condition of anonymity.
Thermo Mechanically Treated (TMT) steel rods, indispensable for structural strength, have perhaps seen one of the most dramatic hikes. The rate of steel bars has shot up from ₹60,000 per metric tonne to as high as ₹85,000 per metric tonne, according to recent data from local suppliers. This translates into enormous budgetary stress for structural construction, particularly in multi-storey residential or commercial buildings. Steel manufacturers cite global fluctuations in iron ore prices, elevated shipping costs, and a jump in domestic demand as primary causes. "We have no option but to pass the cost onto our clients, even if that means we risk losing some of them," admitted a contractor based in Zoo Road.
The pricing for stone chips—used for concrete mixing and road foundations—has stabilised at around ₹2,000 per cubic metre, while river sand, another critical construction input, ranges between ₹1,400 and ₹1,500 per cubic metre. However, sellers are quick to point out that these prices are negotiable and largely depend on the buyer-seller relationship, quantity ordered, and method of transport. For large construction sites that need regular bulk deliveries, securing favourable rates requires a combination of market awareness and relationship management.
Industry insiders confirm that such rates were significantly lower merely three to four months ago, a trend they say is indicative of broader economic pressures rather than seasonal fluctuations. Transportation costs have spiralled due to rising diesel prices, which directly impact the delivery of materials sourced from other districts. Additionally, newer environmental and mining regulations have complicated the process of quarrying, especially for sand and stone, thereby limiting supply.
As the costs mount, the effect is being acutely felt by prospective home-owners, many of whom are now reconsidering their plans. "My husband and I saved for years to build our home in Beltola. We began construction in January, but the budget has already overshot by at least ₹5 lakhs," said a private employee. "At this rate, we’ll either have to pause or take a loan."
Contractors, too, are struggling to navigate the uncertainty. Many are being forced to renegotiate contracts or revise completion timelines, sometimes at the cost of their reputation. Several builders in the city have reported that projects which were budgeted at ₹5,000 per square foot just six months ago now require upwards of ₹6,000 per square foot, depending on design and materials. This has not only made it difficult to manage existing commitments but has also led to a slowdown in new project launches.
Labour costs have contributed to the squeeze as well. With inflation affecting daily essentials, construction workers are demanding higher wages to keep up. Skilled masons and carpenters, who earlier charged Rs.800 to 900 per day, are now demanding upwards of ₹1,200. Even unskilled labourers, whose wages hovered around Rs.500 daily, are now charging Rs.700 to 800. While this wage adjustment is necessary from a livelihood perspective, it has increased financial pressures on both small builders and individual home developers.
Real estate experts warn that the cumulative effect of these increases could lead to a slowdown in the region’s housing sector. Guwahati, which has seen a steady rise in apartment complexes, retail spaces, and private housing projects over the past decade, might witness stagnation if corrective steps are not taken. "If material and labour costs keep rising unchecked, it will become infeasible for developers to offer affordable housing. That, in turn, will squeeze the lower- and middle-income segments out of the property market," said an urban planner based in Jorhat.
Another aspect adding to the woes is the irregularity and lack of transparency in the pricing mechanisms. There is no centralised rate chart issued by the government or municipal body, which leaves both buyers and sellers to operate in a loosely monitored marketplace. This often results in sudden and unexplained rate jumps, which benefit intermediaries but hurt end users.
The government, meanwhile, has largely remained silent on the issue. Although there have been isolated inspections by revenue and mining officials, there is yet to be a comprehensive strategy to address the material cost crisis. Calls for standardising price ceilings or subsidising critical materials like cement and steel for home constructions have so far gone unanswered. Unfortunately, no industry bodies have submitted memorandums to the state government, urging them to regulate price anomalies, hence the response has been tepid at best.
In the absence of policy intervention, many in the sector fear that the high cost of construction could soon stall Guwahati’s infrastructural progress. With smart city projects, road expansions, and mass housing schemes in the pipeline, a prolonged spike in building costs may derail timelines and inflate project budgets exponentially. Not to mention, it may also lead to compromises on material quality, which could have serious implications for structural safety and urban resilience.
The situation has also led to the proliferation of substandard materials in the market. In a bid to cut costs, some builders are opting for inferior-quality bricks or cement that do not meet the standard compressive strength or safety parameters. Experts warn that such compromises could pave the way for long-term issues, including building cracks, leaks, and even potential collapse.
With no signs of a stabilisation in the immediate future, builders, contractors, and home-owners are treading cautiously. The current crisis calls for urgent attention from the state government, industry regulators, and urban planners to develop a pricing framework that balances fair trade with affordability. Without swift and sustainable measures, Guwahati risks a slowdown in its urban growth and a growing housing gap for its burgeoning population.
