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Rising input costs of steel and cement as well as general metals and the RERA Bill, along with the impact on real estate from the Union Budget may add to base line prices from April 2017.
Steel prices have gone up by around 30 per cent and general metals have risen in cost by around 30 per cent in the last few months. Essential inputs to construction such as cement and sand have seen an increase of around 20 per cent.
The introduction of the RERA Bill by April 30 will make it mandatory for real estate developers to maintain construction deadlines, which will also impact the industry.
“This is likely to impact the real estate market in Bengaluru in the next two quarters, making residential units more expensive and compel developers to pass on the additional costs to consumers,” said JC Sharma, President, Credai-Bengaluru.
“These factors can change the dynamics of the real estate market in Bangalore in the next two quarters,” he added.
“Prices that are currently on the low, are likely to rise in the next two quarters. Considering the scepticism of potential home buyers with regards to price changes, there has been an uptick in enquiries related to home purchases and we have been trying address all the queries,” he claimed.
“Keeping these in mind, it would be wiser for a prospective home buyer to invest in a home now,” said Suresh Hari, Secretary, Credai-Bengaluru.
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