The Confederation of Real Estate Developers’ Associations of India (CREDAI), in a letter to the prime minister office (PMO) said that the prices of steel have undergone a surge in the last year and are impacting the overall real estate market.
The sharp increase in prices of steel in the past six months have increased input costs for the real estate sector making housing less affordable for lower income groups, the association said in a media release.
The steel prices have shot upwards from Rs 29,000-32,000 per tonne in 2016 to Rs 51,000-54,000 per tonne; which is an increase of about 40%. Jaxay Shah, president, CREDAI said, “It is imperative that the government intervene and regulate prices for the benefit of all stakeholders of real estate, especially the consumers, who are having to bear the cascading effects of the increase in costs.”
The price hike is a huge deterrent for investment in real estate and its growth, as it burdens the sector with an additional cost of Rs 90-180 per square foot depending on other variants like height, basements etc.
