Inflation has always been present in Pakistan and a rising concern. Prices of the materials being used in construction are also on a hike. With the prices soaring up high the concerns of property affordability and construction of projects are highlighted quite much.

The rising rates of inflation become an alarming statistic for people across Pakistan. Middle and lower class is burdened even more by the hiking costs. Most noticeably, the petrol price hike is something that the entire nation is worried over. Not only did petrol prices go up; materials from machinery to everyday groceries also rise in prices. This has a major impact on the real estate industry.

Even though Pakistan has seen stellar growth in a short span of time when it comes to real estate industry; the ever-increasing prices of materials for construction make the real estate projects continuously rethink and reevaluate their budgets and funds for the project. This leaves to project delays as well as project abandonment which further produce stress on the overall market when it comes to providing property supply.

Following is a look at the most common construction materials and how their price increment is affecting real estate development:


One of the oldest yet sturdiest and most reliable construction materials are bricks. The cost of bricks can greatly vary and depends on the grade/type of brick being used in construction.

In Pakistan there are generally 3 grades of bricks. These are: the A grade brick known as awwal eent, B grade called doem eent and it has a rough surface whereas the C grade brick is called khangar eent. Whereas the dimensions of these bricks are measured in (L x W x H) as 9x4x3 Inches.

Around the same time in the year 2019, the prices f A grade bricks were about 6,800/ 1000 bricks. This era has the B grade bricks under 5300 PKR/ 1000 bricks. These prices were fixed by Punjab Government themselves.

Now the prices of these same bricks have hiked up to 14000 PKR/1000 bricks on a grade brick whereas the prices for b grade bricks are now 10,000-12,000 PKR /1000 bricks. This is an example of how drastically the brick prices have increased over the span of 2 years. This is the major reason on how you can imagine the budget of big real estate projects being put off.


Another one of the highly valued construction materials is steel. The steel prices have also been soaring high just like brick prices. The concerns on these rising prices does not go unnoticed by property developers for construction of projects.

The price hike of an astounding 70% where the per kg Grade 60 steel bar’s price rose from PKR 110-10. Evidently this is another shocking revelation for those looking to develop properties.

The per kilogram price alone has risen by so much. Steel is a material that is required in measures of tons. This one material’s price has spiked prices across the real estate development sector.

The main reasoning behind the price increase in steel prices is linked back to shipping or import complications, shortage of scraps and dual prices required to achieve steel for construction work. Steel bars are the most common material that saw a drastic increase in pricing, moreover steel products like angles, pipes, sheets and girders all commonly used in real estate development are increasing in prices adjacently due to increased production costs and the ever-increasing demands. Insufficient manufacturing capacity is also something that puts pressure on market and gives enough reason for steel developers to increase prices due to higher demand.


Cement is another essential material for property construction. Like others on being discussed on this list; the prices for cement are also becoming sky high. These increasing prices once again have an impact on the project deadlines which take over years to complete.

To get an image of how much inflation has affected the costs of cement: in the month of October this year, production companies increased the price of cement bags by 25 PKR. When cement is required on large scale, you can surely imagine how these 25 PKR add up to a huge added cost that construction projects did not account for. Estimated price hike on cement from last year to this one is about a 35% increment which is quite alarming.

If the increasing cost of cement itself wasn’t concerning, the transport services for cement have also increased their charges between 10-15 PKR per bag of cement.


Another one of the common construction materials comes in two major types. Ravi gravel which is more preferred than Chenab gravel.

These prices have also doubled in the last year alone. The price hike shows a terrific price for 7500 PKR increasing to 15,000 PKR.

Similarly, the crush used in construction is also increasing in prices. Sargodha and Margalla crush are two of the most used types. Sargodha crush increased by 15 PKR per 1080 sq.ft whereas the price of Margalla crush is standing at PKR 90-95 sq ft after the cost increase.

Apart from the previously mentioned materials there is a lot more to property construction that goes on. The above-mentioned materials are the base ingredients to form what is called a grey structure for the property however its finishes and embellishments make it complete.

Right off the top of your head you can imagine there being need of materials like aluminum, glass panels for windows, sanitary installments, electrical outlets and wiring costs, wood finishes, cabinets and floor/wall tiling are all part of any residential or commercial building.

An estimated average show that per square foot cost of a property has increased by 300 PKR in the real estate projects for 2021. This can only mean bad things for the property sector as the ongoing or previously delayed property projects are going to see lag in their progress due to ever increasing price tags on materials that are cost to build.

Following is a bit of advice on how to build properties with cost effective methods in current rates of inflation:

Carefully pick out a location/plot for construction that doesn’t require extensive work out on its layout and preparation as it can take up a large sum of your budget. This can prove to be helpful in reducing the overall costs that are taken to build the property

Downsizing is ultimately the best way to reduce costs. Infect in the increasing demand of today’s real estate market smaller homes are being preferred by people. As the population grows and people find smarter ways to be economically efficient; they have realized that smaller properties will not only be easier and low cost to build but also easy to maintain in the long run. Even by doing as little as leaving out the extra room you wanted for an open porch can go a very long way in saving costs with the current price hikes.

Designing the property is another aspect that can take up a lot of consultation fees. Everybody has their dream house planned out in their heads so why not that idea a go? In the present world of information technology your starter courses on about any topic are just a click away so sign up for a free course or take tips on designing your own house and get creative to cut the costs.

By designing the house, yourself you can also help keep within a budget as this property will fit just for you. You can decide where and how you can save costs in construction; choose an open floor plan to your liking, cutting down on installing multiple kitchens or restrooms in the house and so on.


Pakistan’s real estate market has been providing some stellar real estate developments one after the other. Property has become increasingly more affordable however the past few years have proved to be a massive hurdle for Pakistan’s real estate sector.

The ever-increasing prices on just about everything have also greatly affected the real estate market. The real challenge arrives when the real estate projects that are developing societies come to a halt just because there is a spike in the costs of construction materials. The project management must constantly revise their plans and even lead to sometimes abandoning their construction on projects putting pressure on the ever-increasing demand.

For those looking to build their own properties, this can become a very big obstacle as well. However, there are plenty of smart decisions that one can make to ensure that their property construction will fit within their given budget. Downsizing the house, designing the layout as efficiently as possible and doing it yourself can be just the trick you need to cut the increasing costs on property construction.