There’s a famous saying in Tamil, known as “Build a home, Have a marriage”, Which is considered as the two toughest tasks ever in life. Home is more than four walls and ceilings, there are many factors to be considered while building a home.
In the real estate sector, the past 1 and half years have been full of obstacles and adventures. Few factors which favour the homes construction process would be the Availability of Manpower, Price of Raw materials from Steel to Lumber. The increase in the price of materials made the developers under unavoidable pressure and the middle-class homebuyers in a redundant situation.
The implementation of the Real estate regulatory act (RERA) committee is a major step in bringing in a cost-effective, efficient and properly monitored construction process. The Cost of construction materials including sand, steel, sand, bricks etc., has increased by 20 % to 25 % in the past few months, which results in a surge in construction cost which will directly affect the increase in the value of houses.
Along with the increase in the cost of materials, the availability of manpower is another challenging factor that deeply affects the construction sector during the lockdown. It results in delayed construction of housing projects.
As the industry was trying to revive itself with the help of government measures and low interest rates, the price hike has again created a dent in the growth of the industry.
The cost has increased by almost 10% to 15 % per sq ft of the built-up area due to the escalation in steel prices alone. In the coming months, it will cost more than Rs 1,000 per sq m. This will result in a 30-60 % increase in apartment Price. This price hike seems unavoidable. Also, the pandemic has taught the need and importance of bigger personal space which attracts home buying crowd towards the real estate.
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