With inflation touching 12.98%, realtors here are finding it difficult to hold their price line and plan to increase rates for residential units by Rs 100-500 per sq ft later this month.
According to Confederation of Real Estate Developer’s Associations of India (Credai) Bengal, there has been a 25% increase in the construction cost of residential buildings over the last one year, almost double the increase during last year over 2006.
“Construction cost has increased from Rs 1,265 per sq ft in 2006 to Rs 1,811 per sq ft in July 2008, or by 43%,” said Pradeep Sureka, president of Credai Bengal. The city has added almost 10 million sqft of real estate space in last one year.
While steel prices have gone up by 107% in the last two years to Rs 45,500 per tone, cement has become dearer by 39% at Rs 4,900 per tone. “Even cost of bricks has doubled in the last two years to Rs 4.40 per piece,” Sureka said.
In April this year, Prime Minister Manmohan Singh had asked steel companies not to increase prices and the big steel makers had responded by holding the price line for three months.
“If the steel companies start increasing prices after August, prices could go up by Rs 500 per sq ft,” said S. Rungta, VP of Credai.
According to Credai estimates, direct and indirect taxes add nearly 27% to the cost of a six-lakh sq ft residential project with 30-40-metre high buildings. For a property selling at Rs 2,600 per sq ft, a buyer has to shell out Rs 211 as stamp duty and registration charges. Indirect taxes have already added around Rs 483 per sq ft.
Realtors said their sales have come down by more than 30% in the first quarter of 2008-09. Many of them will be gauging the customer mood at a property fair scheduled to open on August 11.
“We have requested Credai members to hold prices till Home Front-2008,” said Sushil Mohta, executive body member of Credai India, referring to the annual event.
However, banks said housing spends in West Bengal pick up after the second quarter, after people have done their festival spending.
According to SK Goel, chairman and managing director of Kolkata-based Uco Bank, the demand for housing in Kolkata and West Bengal starts picking up after the festive season.
TagsAffordable Housing Ahmedabad Bangalore Bank Of India Chennai Commercial Real Estate Credai Delhi developers Dlf Estate Projects Greater noida Gurgaon Housing Projects Hyderabad India Indian Real Estate Investment Investments Joint Venture Jones Lang Lasalle Kolkata Managing Director Mumbai New Delhi noida Parsvnath Developers Private Equity property Pune Rbi. Real Estate Real Estate Developer Real Estate Developers Real Estate Investment Real Estate Market Real Estate Sector Realty Reserve Bank Of India Residential project Residential Projects Residential Property Slowdown Townships Unitech
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- May 2012
- April 2012
- March 2012
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- December 2010
- November 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- March 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- January 1970
- Residential Plot / Land for rent in Mathikere, Bangalore
- 3 Bedroom Apartment / Flat for rent in Shivaji Nagar, Nagpur
- 2 Bedroom Apartment / Flat for sale in Anant Nagar, Nagpur
- 2 Bedroom Apartment / Flat for sale in Mankapur, Nagpur
- Shop for rent in Dharampeth, Nagpur
- Office Space for rent in Sadar, Nagpur
- 3 Bedroom Apartment / Flat for sale in Baranagar, Kolkata
- Office Space for rent in Gokulpeth, Nagpur
- Office Space for rent in Khamla, Nagpur
- 3 Bedroom Apartment / Flat for rent in Laxmi Nagar, Nagpur