Ready to Move Property Price may be Cheaper than under construction Project in Coming Month which started visibly now.
After staying stagnant for the last 2-3 years, real estate prices are beginning to recover in select pockets/ projects, said a report. According to a sector report by Motilal Oswal Financial Services (MOFSL), while Builders will keep a close eye on how the stock position kissers out, the inventory deficiency will affect prices to rise from that prevailing 12-18 months back.
Property prices are expected to rise in the range of 10-15 % in the coming 3-6 months as Builders are incapable to absorb further the rising prices of crucial raw materials like steel, cement, copper, PVC, etc and would be forced to pass on the burden to buyers, the apex body of real estate inventors.
“ It’s a major concern that construction costs have risen by about 25-30%, which may have a bearing on Project prices over some time. Over the coming 3-6 months, property prices to go up by 10-15 %.
For example, prices of various grades of steel have increased in the range of 60-100 between July 2020 and May 2021. With the price hike in May 2021, the price of the hot-rolled coil (HRC) rose to Rs. 72,000 per tone, the loftiest since 2008. In July 2020, HRC was priced at Rs. 36,500 a tonne. Also, cement prices inched up more than 50-70% from 2020 to 2021. The average retail price of cement is Rs 420 a bag, at present, whereas the same in FY20 was Rs 280. Many fear that this price is likely to increase further in the coming months.