Adding to the rising cost of daily items even real estate prices are set to surge as input prices soar adding pressure on project budgets.
Construction costs are up 40-50% and per a real estate industry body has led to costs rising by Rs 500 per sq ft or more. Speaking to CNBC TV-18 Ashish Puravankara of Puravankara said "Raw material prices have gone up across the board. Labour prices have also spiked up, overall costs are up 40-45%."
While some realtors are warning to close down the operations, housing sector may face some trouble as the cost of construction is going off the roof, ultimately leading to higher real estate prices. Purvankara expects home prices to rise between 8-15% as input cost continue to hurt.
Real estate industry body in Maharashtra have already written to the state government asking to check if the price rise is genuine or due to hoarding/cartelistaion
The costs of key raw materials such as steel and cement used in construction have gone up between 50%-120%.