Construction material prices remain elevated across Pakistan, with cement and steel costs keeping pressure on housing and property development budgets.

Cement and Steel Prices Hold Steady Across Pakistan

Builders Face High Construction Expenses Despite Stable Cement and Steel Rates

By News Desk Last updated Oct 18, 2026

ISLAMABAD: (News Desk) – Cement and steel prices in Pakistan’s construction market remained largely unchanged this week, offering some stability to builders and property owners after months of market fluctuations. However, the cost of building materials remains high, keeping overall construction expenses under pressure.

Grey cement prices are currently ranging between Rs1,500 and Rs1,610 per 50kg bag across major markets, including Lahore, Karachi and Islamabad. Leading brands such as Bestway, DG Khan, Maple Leaf and Lucky Cement are generally available at Rs1,515 to Rs1,590 per bag, while premium sulfate-resistant cement costs more than Rs1,700 per bag.

Prices vary slightly by region, with supplies in southern markets benefiting from proximity to seaports, while transportation costs add a freight premium in northern areas.

Steel reinforcement bar prices have also remained stable in recent weeks. Grade 60 rebar, widely used in residential and commercial construction, is trading at around Rs277 per kilogram, equivalent to Rs277,000 per metric ton at mill-gate rates. Grade 40 steel is priced at approximately Rs275 per kilogram, or Rs275,000 per metric ton.

Market stability has been supported by steady inventory levels and adequate supplies of imported scrap metal. However, high production costs continue to limit the possibility of significant price reductions.

The broader construction sector has undergone a substantial rise in costs over the past five years, driven by persistent inflation, currency depreciation and higher utility tariffs. Grey cement, which was available for less than Rs700 per bag around five years ago, has more than doubled in price. Steel reinforcement bars have also recorded a significant increase amid changes in international scrap prices and domestic electricity costs.

The increase has placed additional financial pressure on people planning to build their own homes. Industry estimates suggest that a single-storey house covering 1,000 square feet may require around 400 to 450 bags of cement for foundations, slabs and walls. At current market rates, cement alone could cost more than Rs650,000, before accounting for steel, sand, crush and other construction materials.

Estimates for construction costs, including structural grey work and basic interior finishing, currently range from Rs3,000 to Rs3,250 per square foot in urban markets. A typical five-marla house with a covered area of approximately 1,350 square feet may require an investment of Rs5.5 million to Rs8.5 million, excluding applicable taxes.

The cost of constructing larger 10-marla and one-kanal homes can run into tens of millions of rupees, depending on the design, materials and finishing standards.

Industry experts advise property owners and builders to obtain updated bills of quantities and verify material weights and deliveries directly with suppliers to manage expenses more effectively.