[INDIA REAL ESTATE NEWS] Good morning everyone I am Rumi Dhar from Kama Group.
Here I have important INDIA real estate news to share with you which is as mentioned below.

Rising price of development owing to steady improve in prices of uncooked supplies together
with steel and cement and extra surge within the backdrop of the Russia-Ukraine battle is
making actual property developers jittery.
Concerned over the fee stress, realtors via their pan-India physique National Real Estate
Development Council (NAREDCO) have sought the intervention of the Ministry of Housing &
Urban Affairs (MoHUA) to arrest the rise in the price of constructing supplies, particularly
steel and cement.

“The escalation in prices is due to unprecedented events facing the world, including the
Covid-19 pandemic and now, the Russia-Ukraine war,” Naredco mentioned in a letter to
housing minister Hardeep Singh Puri. “Due to the increase in the price of raw materials, the
cost of real estate projects has gone up manifold. The developers are facing the brunt of the
escalating cost of construction while the sale price remains unchanged.”

NAREDCO has advised that the import responsibility on steel be introduced right down to zero
from 7.5% for a interval of two years and {that a} ban be imposed on the export of steel for
2 years until the difficulty associated to excessive pricing and availability in home markets are
resolved.

Besides, it mentioned, the worth of steel and cement ought to be regulated until the time the
availability is restored within the home markets and each cement and steel ought to be put
within the decrease slabs of the products and companies tax (GST). The council additionally
advised that the utilization of imported cement be allowed.

According to NAREDCO, the true property sector lately began seeing inexperienced shoots of
revival with the easing of the pandemic, however now rising enter prices are badly impacting
actual property developers.

“The realtors have already sold the inventory; with an increased cost of construction, the
burden might be shifted to the home buyers. We are also approaching the RERA authorities to
consider this as a Force Majeure and to allow the escalation in the selling prices of the flats,”
mentioned Sandeep Runwal, President, NAREDCO Maharashtra.

According to him, the rise in enter materials prices may even be an enormous setback for the
federal government’s mission of ‘Housing for All’ as reasonably priced housing will probably
be a distant dream.

Cement prices have elevated practically 45% to Rs 360 per bag, from Rs 250 per bag in
January 2020, and steel prices have elevated greater than 131% to almost Rs 90,000 per
tonne of steel from about Rs 39,000 about two years in the past.

According to developers, excessive prices of cement and steel have been a severe concern and
aside from the trade our bodies elevating this subject earlier, many trade leaders and ministers
have expressed their concern on many public platforms too.

Last yr, Union Minister for Road Transport and Highways Nitin Gadkari additionally cautioned
steel and cement producers in regards to the irrational upsurge in prices and raised this
subject with the Prime Minister. He additionally mentioned that the federal government was
severe about organising a regulator for steel and cement.

While the price of key uncooked supplies, together with cement and steel, has been on the
rise for a number of quarters, developers worry the fee push this time could have to be
handed on to homebuyers.

Housing gross sales throughout key property markets have been witnessing a restoration
amid record-low house mortgage rates of interest, stamp responsibility reductions by state
governments, steady prices and incentives. However, most developers have up to now not
elevated property prices whereas prioritising liquidity over profitability.




Read more at:
https://economictimes.indiatimes.com/industry/services/property-/-cstruction/realty-developers-seek-housing-ministrys-intervention-on-rising-cement-steel-prices/articleshow/90134847.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

KAMA GROUP
New Delhi
Have a nice day