Friday, February 23rd, 2024

Shock to people planning to buy houses, houses will be costlier by 6-10 percent

Photo: File real estate

home buying plan Not good news for the makers. In fact, due to the huge increase in the cost of raw-materials, labor and land used in the construction of the project, the price of houses in the top six cities of the country may increase by 6-10 percent in the coming days. This has been estimated in the report of domestic rating agency Crisil. It has been said in the report that the prices of houses will increase by three to five percent in the next financial year. The report also states that large real estate companies will register a robust 25 per cent growth in sales in 2022-23. The sales of these companies will increase by 10-15 percent in the next financial year.

Demand increased rapidly after Corona

The report says that due to the rapid increase in demand for housing, the level of vacant houses (unsold inventory) has come down to two and a half years. This was four years before the pandemic. This is because of improving credit worthiness of large real estate. The agency expects housing prices to increase by 6-10 per cent this fiscal and 3-5 per cent in the next fiscal in the top six cities due to a steep rise in the cost of raw materials, labor and land. The report says that the hybrid model of work (office and work from home) is still applicable in many sectors. In such a situation, despite the increase in prices, the demand for bigger houses will not be adversely affected. The top six realty markets are Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Pune, Hyderabad and Kolkata.

Developers have no option but to increase the price

Rakesh Yadav, CMD of real estate company Antriksh India told India TV that the construction cost of the project has skyrocketed. In the last two years, the prices of many raw materials have increased by up to 100 percent. Along with this, the labor cost has also increased a lot. In such a situation, it is not possible to complete the work of the project without increasing the cost. Therefore, the increase in the price of houses has now become a compulsion. However, I believe the price is still too low. If you see, the way inflation has increased in the country and the prices of other things have increased, the price of property has not increased in proportion to that. Taking advantage of this opportunity, it will be beneficial for the home buyers to buy the house without delay. Further price will increase. Home loans also being costlier will increase the burden on the pocket.

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