- The hike is going to be between 10 and 15 percent
The Real Estate Developers Association of India (CREDAI) has predicted that the prices of flats and villas will go up from April 1 and the hike is likely to be between 10 percent and 15 percent of the cost of the property. The CREDAI said that the hike in prices is inevitable in view of the steep hike in prices of building materials like cement and steel. Those who have made their mind to buy property should make it fast before the month-end so that they will be able to save some money.
Earlier the Covid-19 affected the real estate sector and now, the building material price escalation has hit the realty sector hard. The cost of construction has increased, imposing a cut in the profitability of realtors.
As a result, the realtors would have no option, except increasing the cost of flats and villas. Prices of building materials like steel, copper, cement, PVC pipes have gone up in record level. The cost of aluminum has also gone up, leaving very little chance for realtors to spare the buyers from the inflationary tendencies. The cost of construction has been shot up beyond expectations. Therefore, the CREDAI has felt the need for the state and central governments to evolve a policy to regulate the prices of building materials.
