Realty developers in India have cautioned that housing prices could surge by 10-15 percent this year if prices of key inputs like steel and cement do not fall, the Confederation of Real Estate Developers of India (Credai), the largest representative body of builders in the country, said on Wednesday, November 24.
Credai has sought immediate government intervention in reining in steel and cement prices, including considering the option of setting up a government regulatory body to oversee pricing and reductions in the Goods and Service Tax (GST) on building inputs.
Delays in construction caused by the pandemic, lockdowns, shortages of labor and disruptions in supply chains have already escalated housing construction costs by 10-15 percent over the past 18 months, the body said in its statement.
If steel and cement prices do not start to fall immediately, builders will be forced to increase housing prices by 10-15 percent, as they are in no position to continue absorbing input cost increases, the statement said.