Housing prices bound to go up in medium to long term on rising construction cost: Credai

No pay cut! Modi govt to treat Central Government workers on duty if they stayed at home during lockdowns

Payment of wages to outsourced persons of Ministries/Department and other organizations of Central Government during 2nd Wave of COVID-19: The Central Government has decided to provide full wages to all contractual, casual and outsourced staff who were forced to stay at home during lockdowns this year.

The association has written several times to the government to control steel and cement prices. It has also filed complaints with fair trade regulator CCI (Competition Commission of India).

Housing prices are likely to rise in the medium to long term as construction cost has gone up by 10-20 per cent due to a sharp increase in prices of cement and steel, realtors body Credai said on Thursday.

Addressing a virtual press conference, Credai Chairman Satish Magar said housing sales have fallen “drastically” since April because of the onslaught of the second wave of the COVID-19 pandemic.

Related News

  • ESIC to cover casual, contractual employees of municipal bodies
  • Your Money: Know how dividend income is taxed
  • Non-life insurers’ gross direct premium rises 11 pc to Rs 12,316 cr in May

He, however, did not give the quantum of the fall in housing sales expected during April-June compared to the previous quarter.

On housing prices, Credai President Harsh Vardhan Patodia said the prices of cement and steel have gone up sharply in the last one year.

“In the medium and long term, prices of real estate are bound to go up,” he told reporters.

Patodia said the developers will be forced to increase the price as they are not in a position to absorb the rise in the cost of construction material.

Patodia said prices for existing customers will not be raised, but rates may go up for new sales.

The association has written several times to the government to control steel and cement prices. It has also filed complaints with fair trade regulator CCI (Competition Commission of India).

Credai President-Elect Boman Irani said the construction cost has risen by about 15 per cent because of a sharp hike in cement and steel prices.

However, he said, a rise in property prices does not mean increased profit margins for developers.

How homebuyer needs and preferences are changing in Covid times

It’s not just the home buyer sentiments that have changed, real estate developers are keeping up with the changing needs of the buyers too.

“Our margins are getting squeezed,” he said.

Irani said the impact of the second wave of COVID on real estate has been more pronounced because everyone suffered in some way.

“The second wave hit fast, hard and hit home,” he said.

The Credai chairman said the government needs to step in and announce measures to bail out this sector, which is crucial for the overall economic growth.

He suggested that the government should allow restructuring of developers’ loan, and a moratorium on loan to boost liquidity in the sector.

Last month, Credai had said that cement and steel rates have increased by 40-50 per cent in the last few weeks and alleged price cartelisation and unfair trade practices by the manufacturers.

The association had written a letter to the Minister of Housing and Urban Affairs Hardeep Singh Puri, seeking his intervention in the matter.


Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

  1. Home
  2. MONEY
  3. Housing prices bound to go up in medium to long term on rising construction cost&nbspCredai

New Income Tax Site: Ill-timed launch of heavy, data guzzling site frustrates return filers

The private income tax softwares have also stopped working as they will start the software updation process once the income tax website is fully updated.