MEDIA COVERAGE
March 16, 2023
How does the Rise In Steel Prices Impact Real Estate Market?
Mr Rakesh Reddy, Director , Featured Article on International Brand Equity
Building materials have become significantly more expensive over the last year as a result of rising housing demand, inflation, and supply chain disruption. India’s steel prices have been notably affected by this in a significant way.
Steel has gotten 5% more expensive in just February 2023. This is brought on by an uptick in export orders, better domestic demand, and rising pricing for raw materials. Real estate developments that are now under construction anticipate a 5–10% increase in construction costs due to rising steel and raw material costs. RERA’s regulatory restrictions make things much more difficult, especially if a large number of units have previously been sold at a discount. It is important to remember that RERA also imposes strict timeframes for project completion. Commodity prices should be stabilized, and unexpected increases should be prevented, via effective policies. This is especially important for the inexpensive housing category, which depends heavily on resource efficiency and streamlined construction methods.
To get an in-depth idea about what our director Mr. Rakesh Reddy has to say about this, click on the link below and take a look at the elaborative piece on the impact of the rise in steel prices on the Real Estate Market of India.
