New Delhi: Another burden of inflation is about to fall on the common man. The price of a house or flat can go up by 10 to 15 per cent as CREDAI, the apex body of real estate companies, has expressed concern over the sharp rise in cement and steel prices. Credai has said that if raw material prices do not fall, residential property prices could rise by 10 to 15 per cent.
To control raw material prices Calling on the government to take action, the industry body has suggested reduction in Goods and Services Tax (GST) on materials used in construction.
Confederation of Real Estate Developers Association Of India (Credai) said that the prices of raw materials used in construction have been rising steadily since January 2020. Construction costs have risen by 10 to 15 per cent in the last 18 months due to construction delays due to cove restrictions and labor shortages, the organization said.
CREDAI said that if raw If the prices of goods do not go down then the prices of residential properties are likely to go up by 10-15 per cent to offset the rising cost of construction.
CREDAI President Harshvardhan Patodia said that We are witnessing sharp rise in raw material prices in India and are unlikely to come down or stabilize in the near future. He said that in such a scenario the builders would not be able to bear the burden of rising costs and they would pass it on to the home buyers.
.