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Inflation hits the Builders dream down

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Flying rates of raw materials and other manufacturer costing is the tense of the hour for many real estate developers. Even after the extra load of investment by the real estate firm they made it clear that housing units will be allotted to their respective buyers at the same rate as it was booked earlier. It will be a marry time for all the buyers after getting to this lines of the developers. According to some confidential sources, president of Mangalore CREDAI, KC Naik says despite being in the race of inflation at all the required materials of the construction there will be adequate home for each buyer with the same eminence committed earlier and it will be on the basis of first come first serve basis. Presently his own firm Mahabaleshwar Promoters and Builders is on completion of two projects with 260 number of units and other two will be inaugurated soon. He further says that the company is in the market since two decade and the main strategy to follow during the inflation period is either to stop for a while or make the projects complete as early as possible before it hits the top peak. And this firm has never use the weapon of inflation to earn more profits from the customers.
Now according to the market research almost all the attachments of the construction have gone high priced tremendously from last six month. And the extra demand for such amenities for purpose of construction has made the scene more competitive. And definitely it decreases the profit percentage of the real estate developers as compared to the earlier time. Cement has inflated from INR250 to INR310; steel which was bought at the cost of INR 33 has gone up to the rate of INR45 per kg. Like wise all the construction materials is affected by the speed price hike from 8 percent to almost 100 percent.
Source: NIMMA BENGALURU

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