Real Estate: Homes have to be expensive, builders can raise prices by 18-20% in new projects from April

silhouette of crane near high rise buildings during sunset
Photo by Jiyoung Kim on Pexels.com

Prices of important materials like cement and steel have been steadily rising. As a result, the cost of new construction in real estate is constantly increasing. Due to all this, Ahmedabad builders are planning to increase the price by 18-20% in new projects registered from April. The affordable housing sector will be most affected by this situation.

The builders’ project cost increased

Tejas Joshi, President, Credai Ahmedabad-Gaihead, said that prices of steel and cement have been rising steadily for the last one and a half years. Builders have not raised property prices against it. Both of these materials account for about 30% of the total project cost which has increased our cost. So far we have not let the burden fall on the customers but in the current scenario, the projects which will start after April are considering an 18-20% price increase. However, this has not been decided yet.

Changing the policy level will increase the burden on consumers

Dhruv Patel, the vice-president, Credai Ahmedabad-Guyed, said the government’s tax policy is changing. This will reduce the benefits available to builders in real estate. Credai National has made representations to the government in this regard. Until now, it used to be that the concessions given to developers were passed on to customers buying a home. This is especially true in the Affordable segment. We hope that the government will continue to provide relief to the builders.

man in yellow safety vest climbing on ladder
Photo by Pixabay on Pexels.com

Developers race for project registration

“The Alternative Minimum Tax (AMT) scheme is coming to an end on March 31,” said Viral Shah, Joint Secretary, Credai Ahmedabad-Guyed. So far the central government has not announced an extension. Only those projects which are registered before this time will get the benefit of AMT. At present, there are about 120 such projects in Ahmedabad out of which about 40 have been approved.

At Guyhead’s property show, about Rs. 20,000 crore projects

Chitrak Shah, Vice President, Credai Ahmedabad-Guyed, said that Guyed Property Show and Real Estate Urban Summit will be held on March 11-13. The show will feature more than 250 projects from 65 developers in Ahmedabad city. The estimated investment for all the projects coming up in the show is around Rs. 18,000-20,000 crore. About 50,000 people are expected to visit the property show during the three days.

krunal3536

Share
Published by
krunal3536

Recent Posts

Specifications of Redmi Note 12 Pro series revealed before launch, will be provided with 120W fast charging

Specifications of Redmi Note 12 Pro series revealed before launch, will be provided with 120W fast charging

Overview Xiaomi's Redmi Note series recently launched the Redmi Note 11 Pro in January 2022…

5 months ago
RR vs RCB: Rajasthan and Bangalore face to face today, Sanju eyeing a hat-trick of victory, Yuzvendra Chahal’s challenge in front of RCB

RR vs RCB: Rajasthan and Bangalore face to face today, Sanju eyeing a hat-trick of victory, Yuzvendra Chahal’s challenge in front of RCB

Overview Rajasthan team has excellent batsmen and bowlers, but there is a dearth of good…

6 months ago
Mega-merger: HDFC and HDFC Bank will merge, Chairman Deepak Parekh, said- I could not sleep for two nights

Mega-merger: HDFC and HDFC Bank will merge, Chairman Deepak Parekh, said- I could not sleep for two nights

Overview Housing Development Finance Corporation (HDFC) and HDFC Bank have introduced a merger. Under the…

6 months ago
How the virus reaches your smartphone, what is the way to prevent it

How the virus reaches your smartphone, what is the way to prevent it

Overview Do not connect your phone to an unknown computer or laptop. The system you…

6 months ago
KKR beat Punjab by 6 wickets: Russell turned the tide with 8 sixes, scored 70 runs and chased the target of 138 runs in the 15th over

KKR beat Punjab by 6 wickets: Russell turned the tide with 8 sixes, scored 70 runs and chased the target of 138 runs in the 15th over

Overview The 8th match of yesterday's IPL tournament was played between Punjab Kings and Kolkata…

6 months ago