Panaji: Worried about the increase in the price of construction of construction materials, including cement and steel, the Confederation of the Indian Real Estate Developer Association (Credii) on Wednesday urged the government to control increased prices.
Creda-Goa said failure to overcome skyrocket prices would push the price of state real estate at least 10-15% in the near future.
Developers say that while construction costs increase, there are no provisions in real estate regulation laws and norms to revise and increase the cost of apartments or homes after the initial agreement has been signed.
“We consistently witnessed a sharp increase in raw material prices over the past year and they did not seem to be reduced or stabilized in the near future,” said President of Credi-Goa Nilesh Salkar.
“Developers may not be able to absorb increased costs and, unfortunately, must pass the burden on the buyer of the house,” Sales of residential property see a rebound during the celebration period, but the developer has also seen the price of almost all the material and shooting of commodities consistently since last January.
“Add this construction delay caused by locking, curfew, and lack of labor which causes an increase in labor costs, causing a direct increase in construction costs anywhere between 10-15% in the last 18 months,” said Salkar.
Credai has suggested that the center must allow price escalation by allowing clauses in the seller-buyer agreement.
“The government can also consider allowing input tax loans for real estate projects and GST rationalization on various construction materials from their current level because this will reduce the price of housing properties,” Salkar said.