Housing prices may rise 10-15 pc if rates of construction raw material not controlled says CREDAI

Photo: PTI

Prices of houses may increase, effect of expensive cement

New Delhi. Realty sector apex body CREDAI has expressed concern over the rising prices of cement and steel and has estimated that if the prices do not come down, the prices of houses may see an increase of 10 to 15 percent. Seeing the impact of raw material prices on consumers, the industry body demanded that the government should take measures to control prices and also suggested reduction in GST for raw material involved in manufacturing.

The Confederation of Real Estate Developers Association of India (CREDAI), which has more than 13,000 member developers, reported that the prices of raw materials associated with construction have been increasing continuously since January 2020. Further, the association said that the construction cost has increased by between 10 per cent and 15 per cent in the last 18 months due to the delay in construction due to the lockdown as well as labor shortage. “If the rise in raw material prices does not ease soon, there is a high probability that the prices of residential properties will increase by 10-15 per cent to compensate for the increased cost of construction,” Credai said. ,

Harsh Vardhan Patodia, President, Credai National, said: “We are witnessing a steady sharp rise in raw material prices over the past one year and prices do not appear to be declining or stabilizing in the near future. He added that developers are likely to bear the rising costs for a longer period of time. may not be able to afford it and in the coming times, it may be a burden on the home buyers.

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