CHENNAI: Housing prices in the city could go up by 15 per cent from next quarter (October) due to a rise in cost of raw materials like steel, sand, cement, etc.
Addressing the media here on Wednesday, Sivagurunathan, president of Confederation of Real Estate Developers Association of India (CREDAI) Chennai chapter, said that the cost increase would also include the housing board plots. In the past four years, prices of steel per tonne increased by nearly 65% and bricks by 200 per cent, he said.
Builders' Association of India state secretary S Rama Prabhu said, "Construction cost has gone up by `300 per square feet due to the hike in prices of raw materials."
A Shankar, COO, Strategic Consulting and Valuation, JLL West Asia said, "Property prices will increase due to increasing input costs. This rise will vary depending on location and stage of construction. Among buyers, anticipated price increase triggered a desire to purchase quickly. This is the right time to buy your dream home."
Sivagurunathan added that the unsold inventory in Chennai has come down to 5,000 as no major launches took places in the last three years, adding the real estate industry in the city is witnessing a good demand, be it in the commercial or residential sector, from first-time buyers post pandemic.
"This is encouraging, he said. He also said the interest rates is likely to go up. What was earlier a 6 per cent home loan offered by banks is now nearly 8 per cent. The chances of RBI hiking repo rate will make home loans more expensive," he said.
He urged buyers to resolve issues pertaining to the developer through the consumer redressal forum rather than going to the Real Estate Regulatory Authority, as it could be sorted out within 30 to 60 days.
He said CREDAI will oppose GST on premium FSI.
It is learnt that GST is not levied by either CMDA or Directorate of Town and Country Planning, which is mandated to collect GST, for the premium FSI.