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

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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.

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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.


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