Unregulated rise in cost of construction material slows realty sector

New Delhi : Sharp rise in prices and interest rates have affected the real estate sector adversely. According to a survey, the slowdown in the realty sector is likely to bring down its contribution to the GDP to below 8 percent in 2011-12 as against 8.1 percent in the last fiscal year.

According to a survey conducted by industry body Assocham among the industry players, the slowdown in the sector is mainly due to an unregulated price hike in key construction material, together with rampant shortage of workforce at all levels.