Surging steel, cement prices may make homes costlier: CREDAI

Bengaluru: Steel and general metals prices have gone up by around 30 per cent each in the last few monthswhich can change the dynamics of the real estate market in Bengaluru in the next two quarters, apex body of Private Real Estate Developers Associations, CREDAI said on Thursday. 

In a statement here, Confederation of Real Estate Developers’ Associations of India (CREDAI), Bangalore President J C Sharma said the prices that are currently on the low are likely to rise in the next two quarters.

“Considering the scepticism of potential home buyers with regard to price changes, there has been an uptick in enquiries related to home purchases and we have been trying to address all the queries,” he said. 

Essential inputs to construction such as cement and sand have seen an increase of around 20 per cent, he said. 

Further, the proposed introduction of the RERA Bill by April 30 as originally scheduled, will mandate that real estate developers maintain a separate account, which will be used towards timely construction. 

All these factors, from rising input costs of steel andcement as well as general metals and the RERA Bill, coupledwith the impact on real estate from the Budget may add tobaseline prices with effect from April 2017, making residential units more expensive and compel developers to pass down additional costs incurred to potential consumers, he said. 

“Keeping these in mind, it would be wiser for a prospective home buyer to invest in a home now. 

The market is currently stable and the buyer can command the best price possible, with a range of amenities,” CREDAI-Bengaluru Secretary Suresh Hari said.