Construction projects across Karnataka are getting delayed, cancelled or halted as the realty sector has been faced with steep and steady rise in prices of cement, steel rods, bricks and other input material apart from shortage of about 40 per cent skilled workers, industry body Assocham said.

Assocham interacted with around 150 people from the industry across Karnataka, including builders, contractors, developers, building material manufacturers, traders and real estate consultants to ascertain the impact of soaring construction prices and labour shortage on the State's real estate and construction sector.

About half the respondents said upward spiralling costs of significant construction materials have been putting great pressure on project execution as they find it difficult to keep their margins intact, according to an Assocham statement.

Steel, cement and labour are key components and account for almost 75 per cent of overall construction cost.

All raw materials have been hit by rising prices. Besides sharp rise in lending rates by banks has also badly hit the sector, said majority of construction material manufacturers and traders, adding they are cutting down production instead of passing on the raise in raw material cost to end consumers.

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