Home buyers to be affected fears the apex body of real estate developers. They blame the steep increase in cement and steel prices for this.
By Varun Singh
Your dream home may further be delayed, this is what the apex body of real estate CREDAI fears.
CREDAI has written to the central government seeking their intervention. The letter is addressed to Hardeep Singh Puri, central minister for Housing and Urban Affairs
The letter is a request for immediate intervention for controlling the steep hike in prices of cement and steel amidst COVID 19 crisis.
According to CREDAI, amidst this unfortunate situation, all industries are combatting the crisis and real estate industry is no different.
Real estate is the second largest employer in the country, and the industry desperately wants to start the construction activity across the country.
The letter states, “We would like to bring your attention to the cartelization by the cement and the steel manufacturers by imposing a sudden increase in their selling price.”
CREDAI states that across various states, there has been an increase of Rs 100-250 per bag of cement. Steel prices they allege has increased by Rs 2,000-2,500 per metric tonne.
They say this will ultimately lead to home buyers being effected as the construction prices will go up.
“Given the current crisis faced by real estate industry because of COVID 19 or even otherwise, such an abrupt increase will be a bolt on the blue for the developers and will lead to increase in construction cost and overall project cost, hurting homebuyers.” CREDAI said.
Developers claim that with wafer thin margins many developers may be constrained to stop construction work, thereby impacting delivery of the projects. Thus leading to penalties under RERA, and other authorities and so on. “Needless to say, this will have a cascading effect on the home buyers also,” reads the letter.
The builders body also feels that the increase in prices of cement and steel is abrupt and highly unethical. They also claim it amounts to unfair and restrictive trade practices.
They have urged the government to control the price rise and requested the minister to take the matter with the concerned relevant ministries.