10% price hike in the real estate projects across the country

It has been a month since the developers in Maharashtra showed a price hike in residential projects and various property firms across India have increased under-construction unit prices.

Puravankara Limited, which effected an increase of 3% to 5% in the third quarter of the previous financial year, said it would persist to look at “periodic” upward revisions in its pricing considering an 8% to 15% increase in commodity as well labor costs since February.

Puravankara Managing Director Ashish R Puravankara said that they are conscious of the fluctuating market dynamics. They are keeping this in mind while planning to implement a periodic increase in price in a small incremental fashion across their brands.

The company says that the engineering teams at the Puravankara have been working hard trying to offset costs via optimising utilisation of raw material along with mitigation of construction waste. However, various reports have suggested that developers on the board might not escape the scourge escalation cost.

As per a study by the Confederation of Real Estate Developers' Associations of India (CREDAI), approximately 78% of 1,850 developers who were surveyed predicted that they expect a rise in prices to the tune of 10%, to an offset of a projected 20% increase in costs in the board. Almost 46% of these developers said they expected a delay in project timelines as well.

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