CREDAI- Raw materials cost are increasing and it will push property prices up by 10-15% in near future

Anuj Puri, Chairman - ANAROCK Group: 

We have to give credit where it is due - despite the massive increases in input costs for developers since the pandemic took hold, they held on to the low property prices as long as possible in order to foster and nurture demand.  However,  with the present rising inflationary trends of input costs like cement, steel etc. it was evident that sooner or later developers would have to hike their prices. The hikes in the cost of construction materials are too severe to absorb any further without impacting buyers. Inflation has impacted our lives at every level, and real estate construction is certainly no exception.

Mr. Saransh Trehan, Managing Director, Trehan Developers

Construction cost has already gone up by 10-20 % compared to last year because of the increase in cost of raw material as well as labour charges. Developers are left with no elbow room to absorb this increase in raw material cost, unwillingly developers will have to off-set the increase in cost by increasing the price to some extent.

Mr. Anubhav Jain, CEO, SilverGlades Group: "Raw material costs like cement and steel have gone up significantly in the last few months. Given that most developers are operating on very thin margins in the present market condition, there is a huge pressure on pricing. We are evaluating our input cost, if need be we will also have to increase the price."