Buying a dream house in Indore will be 20% costlier now

Developers told the media that in Indore, the average cost of building a residential and commercial property has grown from Rs 1,300 sq ft to Rs 2,500 sq ft, a 20% increase. Buying a dream house in Indore has now become dearer by as much as 20% due to the rise in prices of metals and cement. The increase in prices of metals and cement has escalated the construction costs of residential and commercial properties. They said that the expected increase in fuel prices in March would raise the logistics cost and further hike the construction cost. Gopal Goyal, Confederation of Real Estate Developers Association (CREDAI) Indore chairman, said that the housing costs increased as raw materials such as cement, tiles, iron, all metals, among other inputs, surged. According to industry analysts, homebuyers then would have to pay more since developers would pass on the increased costs to consumers. Aayush Zanzari, a commercial head at a realty company, said that since the Covid-19 pandemic outbreak, housing prices were already high and jumped by nearly 25%. He said the supply costs have further increased due to Russia's invasion of Ukraine and a huge impact on the raw material prices is likely to be witnessed within a month as the supply chain would get disrupted. Gopal told the media that despite the hike in construction costs, demand for residential properties seems to be good in Indore. Image Source Also read: IDA approves 5 schemes to develop residential, commercial properties