Nagpur: Diesel prices and a number of other factors have increased construction costs by RS500 square feet, which are expected to leave more expensive properties, say builders.
Independent sources in the home loan business said there was 9-10%.
Increased price of real estate in the upper middle class and over the city.
Another increase is expected if the tariff is not stable immediately.
Builders mainly blame fuel costs, which have disrupted costs.
Because the situation is normalized after Covid, the request has risen too.
Competitive interest rates of less than 7% for home loans have also triggered demand.
Because it has encouraged real estate activities, the requirements of raw materials also increased leading to supply gaps, said sources.
Which shows an average increase of 50% in less than one year.
Construction costs range from RS1,300 to RS1,500 square feet before.
This has now reached RS1,800 to RS2.200.
The increase will be forwarded to buyers and even new units in existing projects.
The increase in RS500 square feet leads to a large increase at the final price.
The price of Entry Level in Nagpur will increase up to IDR 3,500 square feet of RS3,000-odd earlier, he said.
Cement and Steel are two main components in the construction sector.
According to the record, steel product rates have reached 50% and it is 34% for cement.
Other Builders say the price has not been carried out, but has left a bleeding builder RS6,000 in Wardhaman Nagar.
The tariff is less than 9-10% over a few months ago, he said.
Manoj Rai from Bharat Parekh Homes, a consulting company, said low interest rates had spurred demand.
There is a bank that offers a home loan of 6.40%.
This has increased demand for housing, leaving its impact on input costs.
Goods say even the cost of open land, at the minimum level, has risen touching RS2.500 / sq ft in several parts of the city and the edges.
It was at RS2,000 square feet for several months ago.
The property built by the command as much as RS12,000 per square foot at the top end, it dropped to RS10,000 square feet during a pandemic deterioration.
Nair from pioneer construction say items throughout the council have increased due to increased transportation costs.
Even items such as copper goods and the mode have become more dear.