CREDAI: PRICES OF HOUSES WILL BE UP BY 15% IN THE NEXT 3 MONTHS
Posted on: 14/Jul/2022 3:37:19 PM
The Chennai Branch of The Confederation of Real Estate Developers Associations of India (CREDAI) has informed that as the cost of construction has gone up due to the price increase of the construction materials, the cost of the house will go up by 15% to 20% in the next 3 months!
In this regard, CREDAI Chennai Metro City Branch`s Head Suvagurunathan, Secretary Kirthivas, and Treasurer Mohammad Aslam Bakirshared:
"As the impact/extent of the raging coronavirus has come down and the lockdown restrictions are now relaxed, the public has resumed their interest in buying houses!
As such, the demand for new houses has increased! The sales of the constructed houses which remained unsold have started!
In the current year 2022, from January to July 7064 houses have been sold in the Chennai Metro City and its suburbs!
Out of these, 6097 houses under the CREDAI Members have got sold!
At the same time, in the recently announced house construction plans of 6846 houses, 5002 houses are from CREDAI Members!
It is an important note that the costs of construction materials have risen like never before! For example, TMT rods, which sold at Rs. 37 per kg in 2017, are now sold at Rs. 87/- per kg!
The price of cement has gone up by 28%. The construction cost per square foot has gone up from Rs. 2000/- to Rs. 2300/-!
As such, there has been an increase in the cost burden with an increase in construction costs, the maximum registration charges, and GST!
As such, with no other alternatives, the price of the houses is set to be increased by 15% to 20% in the next 3 months!
This price increase will be based on the projects of the constructors, and their needs/requirements. As such, interested citizens should buy houses as soon as possible!!
Rather than waiting for the constructions to be completed, if the public comes forward to buy as soon as the new projects are announced, there will be an opportunity for the construction companies to expedite their projects!"
