According to the Confederation of Real Estate Developers’ Association of India (CREDAI), residential property prices will rise 10-15% over the next few years as builders seek to counter rising costs.
The price of construction raw materials, such as cement and steel, has been rising steadily over the last year, causing concern among developers. Prices have been steadily rising, and they don’t seem to be stabilizing any time soon.
Real estate sales in major cities have increased since mid-2021. Fuel prices continue to climb consistently, so prices of all materials will also rise. Prices of construction raw materials have been steadily rising since January 2020.
In addition to steel and cement, other materials such as tiles, aluminum, copper, and gas have seen price hikes while property prices have remained flat for the past 5-6 years. Apart from price hikes, developers are also facing a shortage of materials.
According to developers, the issue is complex since RERA limits the ability to raise the price even if the expenses rise.
Last year, CREDAI wrote to numerous central government ministries expressing concern over the sharp rise in material prices and has continued to raise awareness of the problem at various events.