Rising costs of construction materials has forced Bangalore property developers to raise the prices of properties under construction. This decision was taken by members of the Confederation of Real Estate Developer's Associations of India (CREDAI)-Karnataka chapter. The rise in property prices will vary from 3-15%, depending upon the stage of construction that a property project is currently in. An average rise is estimated to be around 7%.
This announcement has left potential real-estate buyers in a jiffy. Individual users mostly depend on home loans or other financial instruments to purchase property. Hence, this sudden hike in property rates, especially in a case when a user has already booked a flat and is being asked to pay the increased price, will defiantly put users in a difficult situation.
This could happen in other states as well. The Central government has taken due measures to bring down the prices of cement and steel. Industry sources inform that the price of steel has come down to Rs 42,000 per tonne from Rs 52,000 per tonne. The price of cement are around Rs 240-269 per bag. Further slow down in their prices is anticipated. On the contrary price of sand and size-stone is still high.
Property builders are already suffering loses on many counts. Bangalore-based real estate agents say that increased prices have resulted in overruns on construction projects. Also, property project are being delayed since the property market is heading a slowdown and the demand has come down. Now, property developers don not want to ready projects in a hurry since these flats/apartments may not find any takers in a stand still market.
The government has announced some relief for the construction industry. Yet, the industry is expecting some goof news in terms of low home loans or some sectoral caps for construction so that the demand for housing takes on. As of now, one can wait and watch the
Bangalore Real Estate segment for any new trends that may spur demand in this market.
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