The Confederation of Real Estate Developers’ Association of India (CREDAI), the apex association of private developers, on Saturday announced to increase the rates of flats and villas by 10-15% owing to the increase in the cost of raw materials.
The revised rates will be effective from April 1. President, CREDAI-Rajasthan, Dhirendra Madan said, “As there is a steep jump in the prices of key raw materials, the prices of the units will be increased by 10-15% from April. Residents who are planning to buy a house should buy it in March to save the extra cost.”
Due to the pandemic the real estate sector is grappling with various problems. Increase in prices of key raw materials has only added to the woes of developers and hit the sector hard. “The profit margins have reduced due to increase in cost. The developers are left with no option but to increase the cost,” said another CREDAI member.
Developers said that there has been a record hike in the prices of steel, cement, copper, PVC pipes, and other construction materials. Moreover, aluminium prices were recorded highest and consistently high fuel prices has led to the increase in project prices.
The developers have also requested the state government and the Centre to bring a policy to maintain the prices so that houses can be provided to all the sectors.
