Property prices to rise by Rs 400-500 per square ft in Gujarat
The announcement was made by Credai Gujarat members and will be applicable across about 40 city chapters of the developers' body
Planning to buy a house? Now may be the right time to get the best price for your dream home! In the wake of constantly increasing raw material prices, mainly steel and cement, developers have announced that an increase of Rs 400-500 per square foot is on the cards.
The announcement was made by Credai Gujarat members and will be applicable across about 40 city chapters of the developers' body.
The decision was taken during the board meeting of Credai Gujarat held in Palanpuron Tuesday. Raw material prices have been the bane of real estate developers for a while now.
Ajay Patel, chairman, Credai Gujarat, said: "Prices of steel and cement have dramatically increased because of which the profitability of developers is being eroded significantly." Patel added: "So far, most developers have absorbed costs but with the constant surge in prices, input costs are increasing."
He added "Therefore, prices of properties will go up effective April 2, be it commercial or residential, across Gujarat."
Developers suggest that besides steel and cement, prices of hardware, glass panels and other raw materials have also gone up substantially.
While steel prices have touched Rs 80,500 per tonne, cement costs Rs 430 per bag, adding to the costs of construction in ongoing projects. Steel prices hovered around Rs 60,000 per tonne in December-end whereas cement cost Rs 325 per bag in the same period.
Surging steel and cement prices have also impacted construction contractors. Gujarat Contractors' Association (GCA) had a long-pending demand of the government to revise project costs in line with rising prices.
Heeding their representation, the state government recently allowed a rise in prices of properties up to a ceiling of 5% in accordance with the surge in raw material costs.
