Surging steel, cement prices may make owning home costlier

14 Mar 2017

Further, the proposed introduction of the RERA Bill by April 30 as originally scheduled, will mandate that real estate developers maintain a separate account, which will be used towards timely construction.
All these factors – from rising input costs of steel and cement as well as general metals and the RERA Bill, coupled with the impact on real estate from the Budget may add to base line prices with effect from April 2017, making residential units more expensive and compel developers to pass on additional costs incurred to potential consumers.

Sharma said “These factors can change the dynamics of the real estate market in Bengaluru in the next two quarters.”

He added that “Prices that are currently on the low, are likely to rise in the next two quarters. Considering the scepticism of potential home buyers with regard to price changes, there has been an uptick in enquiries related to home purchases and we have been trying to address all the queries”.

“Keeping these in mind, it would be wiser for a prospective home buyer to invest in a home now. The market is currently stable and the buyer can command the best price possible, with a range of amenities,” said Suresh Hari, Secretary, CREDAI-Bengaluru.

Source – thehindubusinessline