Rising material costs push up prices in the housing sector

NEW DELHI: The rising steel and cement prices during the past few months coupled with the global hike in the prices of metals has come as a “rude shock” for those constructing their “dream houses” and more so for those who dreamt of a house of their own.
The fallout of the rise in input costs for the housing and real estate sectors has led to massive escalation of costs badly hitting the demand among the middle class and upper middle class strata. The situation has become worse for the lower strata of society.
The real estate market is in a tizzy with demand for housing witnessing a sudden drop and the developers caught in a dilemma whether to revise the property prices or wait for things to stabilise.
Vineet Manchanda, Managing Director of Delhi  based Manchanda and Manchanda Builders, said the rising inflationary trend has resulted in prices going up for all commodities. This has adversely affected the buying power of the common man.
“In the field of real estate, the increase in the prices of the raw materials has impacted both the developers as well as the real users and the situation looks pretty disturbing,” he added.

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