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Real estate is revving up again. Yet, developers are unable to capitalize on the new boom. The spanner in the works? An average 40% increase in raw material prices.How things stand
Take Gujarat for instance. 1,613 new project registrations in FY2021-22 and developers are grappling with rising construction costs. Steel and cement alone have gone up by 40%, let alone labour and other heads. It’s the same story countrywide.
😬 Also: Factor in the last RBI repo rate hike and future ones on the cards.
Home loans will now be costlier while developers are forced to hike project prices alongside. Will demand suffer? It most certainly will.
Is there hope?
The Government has acted. But the effects will still take more time.
🧩 Till then, here’s a riddle- What’s common between developer-margins and wafers? They’re super-slim.
Home loans will now be costlier while developers are forced to hike project prices alongside. Will demand suffer? It most certainly will.
Is there hope?
The Government has acted. But the effects will still take more time.
🧩 Till then, here’s a riddle- What’s common between developer-margins and wafers? They’re super-slim.
Forgive us for the levity. Dark times call for darker humour. And prayers for a better future.