High raw material cost to drive up NCR realty prices by 20%
Home builders in the National Capital Region (NCR) said they might have to raise apartment prices by up to a fifth as steel and cement costs have risen 30-55%, making it more difficult for the companies to sell flats without baking in higher input expenses.
The price for cement per bag has gone up by at least 40% in the past 18 months to Rs 340-380 in June, while steel per tonne has hardened about 50% to Rs 65,000 to 68,000, property companies said.
"If you add the rising fuel cost to it, the cost of construction has gone by at least Rs 400-500 per sq. ft. The margin was already low as there has not been any substantial price rise in seven years. With Covid-19 impacting the raw material supply, we have no option but to pass it on to consumers,” said Pankaj Bajaj, President, CREDAI-NCR.
