Rising construction costs increase home buying costs: CREDAI

The Confederation of Real Estate Developers' Associations of India (CREDAI), Maharashtra, asked the homebuyers to be ready for a steep rise in housing costs as the construction sector is reeling under inflation woes.

While addressing a press conference, CREDAI President of Aurangabad, Nitin Bagadiya, told the media that the costs of raw construction materials had risen sharply in the last few days. Due to which the construction sector has to bear increased prices per project.

He added that the prices of construction materials, including cement, steel, aluminium, plumbing materials, labour transportation, among others, are increasing. The increasing cost will affect the builders and the homebuyers.

The construction sector is a leading industry in the country. The construction business is again under crisis due to the increasing costs of projects.

While the construction sector was facing a crisis due to demonetisation, Goods and Services Tax (GST) and the Covid-19 pandemic, the increasing prices of construction material have affected the whole budget, he said.

He said that the construction sector is the country's largest provider of Gross domestic product (GDP), the largest employer and a factor for economic development. However, homebuyers are facing a financial crisis for multiple reasons.

The Covid-19 lockdowns had affected the construction workers, along with several stalled projects. The rising price of fuel, cement and steel has a huge impact on the construction sector. The housing costs are likely to increase by Rs 500 per sq ft after Diwali, he said.

Akhil Khanna, CREDAI Secretary and Rajendra Jabinda, former state CREDAI President were also present during the press conference.

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