Home buyers might have to shell out 10-15 per cent more for buying apartments in newly launched projects this year as developers are looking at passing on the hike in construction cost to customers, what with the recent surge in steel and cement prices.
While the pricing of completed projects or those under construction is mainly governed by the demand-supply situation, the input cost becomes a deciding factor in pricing new projects.
Steel and cement prices increased by nearly 15 per cent over the last six months. The two raw materials together contribute about 20-25 per cent of a project's cost.
"The impact of the rise in input costs comes with a time lag and so an over five per cent increase in prices can be expected in the coming six to nine months," Mr Param Desai, Research Analyst, Real Estate and Logistics, Angel Broking, said..
Property prices in cities with a large IT footprint, such as Bangalore, Pune, Gurgaon and Kochi were, however, likely to witness a higher price rise, to the tune of 10 per cent, on account of high demand, he observed.
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