Surprising increase in the cost of new homes in Chennai from October!!
Posted on: 14/Jul/2022 10:07:52 AM
Those persons who are interested in buying a new house in Chennai would have to shell out more money from their pockets from the month of October!!
It is now revealed that from then next quarter or October month the prices of houses would increase by 15percent in Chennai. The prices of raw materials like steel, sand and cement have become more now and due to this the cost of new houses would also be more.
According to Mr. Sivagurunathan, president of CREDAI, Chennai chapter, cost increase would also include the housing board flats also. He shed light on the fact that in the last 4 years the prices of steel per tonne have gone up by 65percent and the prices of bricks have gone up by 200percent
It was highlighted by Mr. S. Rama Prabhu state secretary, Builders Association of India that the construction cost has increased by 300% per square feet and hike in the raw materials cost has been responsible for the increased construction cost.
Increasing input costs would increase the property prices and this was mentioned by Mr. A. Shankar COO, Strategic Consulting and Valuation. Based on the location and the stage of construction, the rise would vary.
Mr Sivagurunathan later spoke about how the unsold inventory in Chennai has come down to 5000 and how in the last 3 years there were no major launches. He added that the real estate in Chennai has been witnessing a superb demand in both residential and commercial categories from the first time buyers. After the Coronavirus infection pandemic in Chennai, the interest among buyers has gone up and that has been encouraging. It must be taken into account that the interest rates would also become more soon. He was of the view that home loans would become more expensive as there are chances of RBI hiking repo rate.
Through the consumer redressal forum, the home buyers must try to resolve their issues with the developers and they must not approach the Real Estate Regulatory Authority. Truth is that it could be sorted out within 30 to 60 days. This was pointed out by Mr. Sivagurunathan.
