Credai says expensive steel and cement can raise house prices by up to 15 percent


Agency, New Delhi.

Published by: Jeet kumar
Updated Wed, Nov 17 2021 04:30 AM IST

Summary

Since January 2020, there is a continuous increase in the construction of the building. The cost of construction has already risen 15-20 percent even before the delay due to closure, curfew and the epidemic-imposed labor shortage.

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The cost of construction of houses also increases continuously due to the increase in the prices of raw materials such as cement, steel. The Federation of Real Estate Developers Associations of India (CREDAI) said on Tuesday that house prices will also rise 10-15 percent if no action is taken soon to reduce commodity prices.

Harshvardhan Patodia, president of CREDAI, an organization that leads more than 13,000 developers, said the government will soon have to take steps such as lowering prices for products such as cement and steel and reducing GST on other raw materials.

With the economy picking up, steel prices are on the rise across the world, including India, so the cost is expected to rise once again. If this happens, consumers may also have to spend up to 15% more to buy a home.

I can’t take the pressure for long
Anuj Puri, president of the real estate advisory firm Anarock, said developers should receive credit for keeping the housing market affordable. Despite mounting cost pressures, prices have remained low, but cannot be supported for long. Most developers operate on very low margins and, sooner or later, they will have to make the decision to raise prices.

Sales to increase by 20 percent in eight cities, including Delhi-NCR
Home sales in eight metropolitan cities, including Delhi-NCR, may increase 15-20% due to rising jobs and falling interest rates. Global real estate consulting firm PropTiger said demand for homes has risen steadily since July following a reduction in infections and more than 70,000 homes are expected to be sold in the October-December quarter. This will be around 20 percent higher than in the same quarter last year. A total of 1,38,051 homes were sold in 2021 from January to September, 12% more than the 2020 pandemic.

Expansion

The cost of construction of houses also increases continuously due to the increase in the prices of raw materials such as cement, steel. The Federation of Real Estate Developers Associations of India (CREDAI) said on Tuesday that house prices will also rise 10-15 percent if no action is taken soon to reduce commodity prices.

Harshvardhan Patodia, president of CREDAI, an organization that leads more than 13,000 developers, said the government will soon have to take steps such as lowering prices for products such as cement and steel and reducing GST on other raw materials.

With the economy picking up, steel prices are on the rise across the world, including India, so the cost is expected to rise once again. If this happens, consumers may also have to spend up to 15% more to buy a home.

I can’t take the pressure for long

Anuj Puri, president of the real estate advisory firm Anarock, said developers should receive credit for keeping the housing market affordable. Despite mounting cost pressures, prices have remained low, but cannot be supported for long. Most developers operate on very low margins and, sooner or later, they will have to make the decision to raise prices.

Sales to increase by 20 percent in eight cities, including Delhi-NCR

Home sales in eight metropolitan cities, including Delhi-NCR, may increase 15-20% due to rising jobs and falling interest rates. Global real estate consulting firm PropTiger said demand for homes has risen steadily since July following a reduction in infections and more than 70,000 homes are expected to be sold in the October-December quarter. This will be around 20 percent higher than in the same quarter last year. A total of 1,38,051 homes were sold in 2021 from January to September, 12% more than the 2020 pandemic.


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