CREDAI: Property prices may increase by 10-15% in future!


The builders’ committee demanded that the government should take actions to regulate the prices of raw materials. They also proposed to reduce the tax on goods and services for this. CREDAI, which includes more than 13,000 developers, noted that the prices of building materials have risen steadily since January 2020.

The Confederation of Real Estate Developers Association of India (CREDAI) shows concern about the continuing rise in commodity prices, including cement and steel. Housing prices could rise by 10-15 percent to compensate for the increase in construction costs. The authority also demanded that the government should take steps to control the prices of raw materials, and proposed to reduce the tax on goods and services for this.

Delays in construction causes price hike-

In addition, the association said construction delays caused by curfews, lockdowns and labor shortages have led to a direct 10-15 percent increase in construction costs in recent years.

Generally the prices of all materials and goods have risen every time there is a steady rise in fuel prices. However the prices of building materials have been steadily rising since January 2020. Add to that construction delays caused by labor shortages, lockdowns, curfews, has led to rise in labor costs, which has resulted in a direct 10-15 percent increase in construction costs over the past 18 months. Also RERA does not allow the flexibility to increase the selling price even though construction costs increase significantly.

Government should tackle the increasing raw material price-

Harsh Vardhan Patodia, president, CREDAI National said, we have seen consistently sharp increases in commodity prices over the past year and they do not seem to be declining in the future. Developers may not be able to meet the rising costs and ultimately shift the burden onto home buyers. CREDAI requested the government and relevant ministries to address this issue and address the issue of price increases as soon as possible.

One way to deal with this problem may be to allow price increases by allowing the clause in the agreement between buyer and seller. The government may also consider allowing Input Tax Credit for real estate projects or optimizing GST for various building materials relative to their current prices. If these steps are not taken immediately, property prices in all segments will rise and will directly affect affordable housing and for all government missions for housing.

Hike in construction cost may affect buyers-

Anuj Puri, Chairman – ANAROCK Group said, given the rising inflation trends in the cost of materials such as cement and steel, it was clear that developers would sooner or later have to raise prices. The increase in building material costs is severe, so it can be offset without affecting buyers. Inflation has affected our lives at all levels, and property development is no exception.

Sharp price increase in raw materials-

Anubhav Jain, CEO, SilverGlades Group said, expenditure on raw materials such as cement and steel has risen markedly in recent months. Since most developers operate with very low margins, any hike in prices of raw materials puts enormous pressure. We will estimate our costs for the input resources, if necessary we also have to raise the prices.

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Top 6 reasons to invest in Gachibowli, Hyderabad right now!


Since past few years, there is a sudden surge in the demand of housing units in Gachibowli. One should definitely invest in Gachibowli as it is a growing locality, loved by both end users and investors. Gachibowli, a city in Hyderabad, is one of the fastest growing cities that is ideal for investment and promises attractive returns in the future. It is a recognized ITeS suburb experiencing explosive growth in the form of real estate projects, office rentals and infrastructure projects.

Gachibowli is located in Serilingampally Mandal in the Rangareddy area northwest of Hyderabad. When we look at the real estate market, it is a known fact that Hyderabad has many benefits for property seekers. Since past few years, Gachibowli real estate sector has shown exponential growth thanks to a growing technology sector that has dramatically increased the demand for apartments.

6 Reasons why investing in a flat in Gachibowli Hyderabad is ideal | Reasons to invest in Gachibowli

1- Airport Connectivity-

To make money, various real estate companies in Hyderabad have built residential apartments near Gachibowli. It is only 5 km from the Hitech city and is well connected to Rajiv Gandhi International Airport in Shamshabad via the outer ring road and the Nehru ring road. Alternatively, try world cuisines in the various restaurants in the area and the surrounding area.

2- Gated and premium residential properties-

Several gated community apartments are being sold to serve the IT people of Gachibowli. With luxurious amenities, these flats absorb modern architecture and natural landscapes. Removing visual clutter and providing you a unique serenity that is difficult to find in the city. In addition, there are several premium class apartments for sale in Gachibowli. This locality is ideal for those looking for luxury as well as affordable apartments in Gachibowli.

3- Ideal option for investment-

In addition to the luxury apartments in Gachibowli, several other developers are planning to create more living space. Therefore, those looking for investment opportunities in Gachibowli, Hyderabad should also consider entering Gopanpally and Nallagandla to get the best investment deal.

4- Increased housing demand-

Gachibowli will benefit from the growth taking place in the central regions of Hyderabad. Townships around Hyderabad’s old town have also evolved to boast improved connectivity to the technology hub, attracting potential buyers and investors. While the suburbs around HITECH City, Gachibowli, Banjara Hills and Jubilee Hills were the first to develop. Growing connectivity and infrastructure makes it ideal to invest in Gachibowli. The saturation of open spaces in these areas, combined with declining accessibility, makes the suburbs a viable option.

5- Proximity to reputed companies-

Gachibowli has also witnessed careful green preservation zones and offers excellent social infrastructure and services. The locality also offers access to major tourist attractions, such as Ramoji Rao Film City, Hussain Sagar, Fort Golconda and Shilparamam. The main advantage is that Gachibowli is close to Hitech City and several companies such as TCS, Microsoft, Capgemini, Accenture, Infosys and Wipro as well as UBS, Bank of America and Franklin Templeton Investments.

6- High demand of rental properties-

Real estate in Gachibowli ranges from one bedroom apartments to large mansions. Tenants range from city leaders looking for family homes to young professionals and couples looking for one or two bedroom apartments in Gachibowli. They are in high demand and delivered very quickly, usually within a few days. A 3 BHK flat in Gachibowli Hyderabad also tops many tenants’ wish lists with its spacious and airy exterior atmosphere.

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Builders have to disclose the status of mortgage loans for apartments


Real estate developers must declare security interests created by them for projects registered with an authority. The decision will increase transparency and inform potential home buyers about any mortgages or loans that the developer has taken in relation to the apartments they intend to buy, or the project itself.

This information is now available with the Central Registry for Securitization and Asset Reconstruction and Securities of India (Cersai). Cersai is the central authority that processes and stores such data. Established under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi Act), Cersai aims to prevent credit fraud, such as loans from different banks on the same property.

Cersai has collateral data created from 22 January 2016 for registered commercial banks and, with effect July 1, 2016 for all other persons registered with it. It has started the process of registration of data on security interest in residential and commercial properties under construction from June 2017.

Home buyers should be aware of the loan status of apartment-

MahaRERA has clearly stated that home buyers and winning bidders must also be aware of the security interest on real estate projects and apartments they are interested in buying. Often home buyers buy a property without knowing its mortgage or loan status, which later leads to lawsuits and legal complications.

If the developer took out a loan by mortgaging inventory or some apartments, and can not return it. The banks will then acquire the property to get their contingent back and that this process can affect the home buyer. However with the new decision this situation can be avoided as Cersai keeps a record of all properties that have been sanctioned for loan. 

Real estate developers must now submit a report to Cersai on the security interests created in the property project. Along with an encumbrance certificate when the project registered with the authority.

In the absence of security interest, the developer must provide a supporting commitment or provide an undertaking. The developer also expected to submit a report to Cersai on changes in property security interests. According to MahaRERA, submitted Cersai reports must be generated within 10 days of the submission date.

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Builders can not divide and sell plots says Greater Noida Authority!


Developers will no longer be able to subdivide and sell their allotted land in Greater Noida and for industrial setup as well. They can not divide and sell land before the establishment of the local authority, and they must also pay a development fee.

The decisions were made today at the 124th board meeting of the Greater Noida Industrial Development Authority (GNIDA) at its Greater Noida office. Sanjeev Mittal, Uttar Pradesh Commissioner for Industrial Development, chaired the meeting attended by GNIDA CEO Narendra Bhoshan and several other senior level officials.

Villages will have smart classroom and libraries-

The board approved a proposal to transform 14 villages into smart villages. Mr. Bhoshan informed the board that a pilot project has been started in Maicha village. The tenders will soon be announced for 13 more villages.

In the first phase of smart village initiative, facilities for drinking water, drains, sewer connections, streets and electricity lines will be built. In the second phase – libraries, Wi-Fi, youth training centers and smart classrooms will be created in the schools of these cities.

Industries that started in Greater Noida even before GNIDA was formed will now be able to buy FAR (floor area ratio) on the remaining plots. They have to pay a fixed fee for this purchase. These companies must also have to pay development fees as well.

Now the apartments will be available to buyers on time

GNIDA stated that in view of the interests of apartment buyers, the board has made an important decision regarding developers to subdivide the plots and sell them. Now the division of large plots is forbidden. This means that the developer will now not be able to independently sell (divide) the plots allocated to him by GNIDA. They will have to complete the project.
This decision taken by GNIDA has two advantages. The builders will only take the land on which they want to build the project. Secondly, the apartments will be delivered on time. GNIDA said that time will not be wasted due to the subdivision of plots. The designated developer will be responsible for the timely delivery of apartments to buyers.

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West Bengal: Real estate rebate window extended till 31 Jan 2022


The Department of State’s Finance has issued a notice extending budget grants for a limited period in the real estate sector. A 2% reduction in stamp duty and a 10% circular rate reduction) for three months until January 31, 2022.

The refund process was originally scheduled to end on October 30. However, CM Mamata Banerjee indicated that it would be extended following an appeal from developers affiliated with the Confederation of Real Estate Developers of India (Credai).

According to the double notifications, a 10% reduction in circle rate, a revised stamp duty of 4% for units upto Rs 1 crore and 5% for units over Rs 1 crore announced in the state budget was valid until October 30 and now is extended until January 31, 2022.

Previously the industry experts had asked the government to extend the rebate by two months until December 31, 2021. But now the government has extended the rebate until January 31, 2022. 

More than 60% of home sales in Kolkata take place in five months, i.e. from September to January. With distributions covered over this period, the industry points to the highest sales recorded in the second half of the year (July-December).

This year, between July and September about 15,150 apartments sold against 6,842 apartments sold in the corresponding period last year. The recovery in demand has also led to an increase in the number of project launches. While only 756 units launched in April-June 2021, the developers launched 3,127 units over the next three months.

Credai Bengal President Nandu Belani said, it is very important for the industry. It will generate demand over the next three months and support the growth we have seen since the end of July.

Shishir Baijal, president and CEO of international real estate consulting firm Knight Frank India, said the extension has come at the right time since we are approaching Diwali. Credai West Bengal President, Sushil Mokhta said it would bring more help to home buyers and bring more revenue to the state funds. 

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