[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. 

Over the last one year, developers’ average cost of construction has risen 10-12%, owing to higher 

input cost due to supply-side constraints, according to a recent report by Colliers 

This surge in cost comes at a time when developers have been under   pressure due to higher debt 

and liquidity concerns over the last few years.

 The cost of key materials like cement and steel have risen over 20% yearly as of March 2022. These 

constitute a predominant share in the total cost of construction.

So far, developers have been cautious about increasing prices as the market was recovering from the 

aftermath of Covid-19.

However, developers have now started feeling the pinch of rising cost and started reviewing their 

pricing strategy.

With rising material cost, developers will be compelled to increase prices as construction materials 

account for about 2/3 rd share in the total cost of construction.

 Developers have already been operating on thin margins over the last few years.

The rising cost will impact developers in the affordable and mid-market segments relatively more 

as they are already operating on lower margins.

With wholesale price inflation (WPI) and material cost, both seeing a double-digit rise, the cost of 

construction can rise by a further 8-9% by December 2022  said Ramesh Nair, CEO, India & MD, 

Market Development, Asia, Colliers.

Read more at: https://realty.economictimes.indiatimes.com/news/industry/dubai-developer-union-properties-says-42-million-misappropriated/90499331


KAMA GROUP
New Delhi
Have a nice day