NEW DELHI: The rising steel and cement prices during the past few months coupled with the global hike in the prices of metals has come as a “rude shock” for those constructing their “dream houses” and more so for those who dreamt of a house of their own.
The fallout of the rise in input costs for the housing and real estate sectors has led to massive escalation of costs badly hitting the demand among the middle class and upper middle class strata. The situation has become worse for the lower strata of society.
The real estate market is in a tizzy with demand for housing witnessing a sudden drop and the developers caught in a dilemma whether to revise the property prices or wait for things to stabilise.
Vineet Manchanda, Managing Director of Delhi-based Manchanda and Manchanda Builders, said the rising inflationary trend has resulted in prices going up for all commodities. This has adversely affected the buying power of the common man.
“In the field of real estate, the increase in the prices of the raw materials has impacted both the developers as well as the real users and the situation looks pretty disturbing,” he added.
4 Comments
Now a days, the price of raw material increased so rapidly that it is becoming dream for a middle class family to make their dream house.
Government should be interfere in this matter and make some strict rules for companies thts why they cant be increase the steel rates so rapidly.
The rates of raw material is rising due to inflation in india.
High inflation is likely to remain a big concern for the government for the better part of 2008. Economists are predicting that the wholesale price index won’t come down to the Reserve Bank of India’s target of 5.5% before October, at least.
Average inflation is expected to be not lower than 6% for 2008-09 as the government grapples with rising global commodity prices and a high statistical base effect.
Increase in the prices of the critical inputs like land, finance and building materials will further distance the dream of owning a self occupied home, especially of the poorer section of the society. Inflation linked unit cost of housing the poor is a must.