"None of the developers are keen on increasing prices now, but given the situation, we are left with no choice but to increase prices," said Dhaval Ajmera, honorary secretary, CREDAI Maharashtra Chamber of Housing Industry (MCHI).
Developers in Maharashtra will not stop construction work despite skyrocketing material costs but will look to increase housing prices in April, said Dhaval Ajmera, honorary secretary, CREDAI Maharashtra Chamber of Housing Industry (MCHI).
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"None of the developers are keen on increasing prices now, but given the situation, we are left with no choice but to increase prices," said Ajmera, "So, there will be an incremental prices following an overall increment in construction costs." He added, "Some developers expect to start charging revised prices, at the start of the next fiscal; we can expect higher (housing) prices by April."
The announcement comes even as material costs have risen by Rs 400 to Rs 500 per square foot in markets like the Mumbai Metropolitan Region (MMR). However, in what must come as a relief to homeowners and to the real estate industry, on the whole, CREDAI MCHI has said it remains committed to uninterrupted construction activity in keeping with RERA regulations.
A few days ago, communication issued by CREDAI chapters in NCR and Maharashtra hinted at developers halting construction work in light of the steady rise in construction costs. Some developers had also said they had stopped all material procurements.
"We will continue construction and not look to halt it," said Ajmera, “We are conscious of the promises we have made to homebuyers and are committed to meeting them, not to mention our commitment to RERA regulations which do not permit us to halt work and delay delivery."
CREDAI MCHI has appealed to various governments to take urgent policy measures that could help mitigate the impact of spiralling material costs on the consumer’s pocket. This includes bringing stamp duty from 5 percent to 3 percent in Maharashtra and permitting input tax credits on the 18 percent GST that developers pay towards construction activity.
(Edited by : Jomy Jos Pullokaran)
First Published: IST