The cost of building materials may go down, given the recent fall in interest rates and fuel prices. Cement, galvanised sheets, concrete tiles and steel rod prices are likely to drop as soon as these new market trends gain traction.

According to DEVKI Group Chairman Narendra Raval, building material prices will be determined by market stability as well as the recently reduced inflation rate. He noted that the drop in crude oil prices would eventually affect the price of items in the real estate sector. As such, the building materials manufacturer is prepared to face high demand for its products.

This comes shortly after lending to the industry went up 6.1% to KES 168.8 billion from KES 158.5 billion for the second quarter of 2012.

The foundation for building a house in Kenya needs about 7 bags of cement per cubic meter. With a factory price of KES 630 for one  bag, this would translate to KES 4410 per cubic meter. The speculated reduction would see such prices fall along with expenses for similar items such as roofing sheets and reinforcement bars.

Raval said that the changes will not take effect immediately. He stated that price adjustments would begin with newer real estate projects.