In addition to steel and cement, the prices of hardware like glass panels and other raw materials have risen sharply.
Planning to buy your dream home? Maybe now is the best time to buy your dream home at the best price. After a steady rise in raw material prices, primarily steel and cement, developers have announced that prices are expected to rise by Rs 400-500 per square foot. The announcement was made by members of Credai Gujarat and applicable to about 40 city chapters of the developer organization.
The decision was made at a board meeting in Credai Gujarat held on Tuesday in Palanpur. Raw material prices have been a nightmare for developers for some time now.
While steel prices have reached Rs 80,500 per tonne, cement costs Rs 430 per bag, increasing construction costs for ongoing projects. Steel prices fluctuated around Rs 60,000 per tonne at the end of December. While cement prices in the same period were Rs 325 per bag.
The rise in steel and cement prices also affected construction contractors. The Gujarat Contractors Association (GCA) has been waiting a long time for the government’s demand to revise the cost of the project in line with rising prices. In line with their contribution, the state government recently allowed a rise in property prices by as much as 5% in line with rising raw material prices.
Constant surge in prices is major problem
Credai Gujarat chairman Ajay Patel said, steel and cement prices have risen sharply as a result developer profitability has fallen significantly. Until now, most developers have tolerated the costs, but as prices continue to rise, the input costs are increasing. Developers suggest that in addition to steel and cement, the prices of hardware like glass panels and other raw materials have also risen sharply. Hence, the prices of properties both commercial and residential will rise in Gujarat from 2 April.
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