By Soniya Gaonkar on Mar 22, 2022 6:46:24 PM
India’s real estate market is advancing quickly and strongly. The ever-growing need for homes and business centres is giving an unprecedented boost to the sector throughout the country. With this rapid growth, a question arises – will property prices if new residential projects in Pune rise? This piece is about highlighting various touchpoints which are and will be responsible for the rise in property rates.
The confederation of the real estate developers association of India (CREDAI) conducted the 'Real Estate Developers Sentiment Survey 2022’ through which significant insights have surfaced for buyers’ advantage. The survey suggests that the real estate prices are going to increase by 20% in the year 2022 and the reason behind this hike is a sharp increase in steel and cement prices. Transporting construction materials constitutes almost a fifth of the expenses in building new structures, which is already witnessing a 13% escalation in construction cost on account of steel and cement. The rise in construction material costs will eventually result in the rise of upcoming residential projects in Pune. Also, wars highly impact oil prices. The recent Russia-Ukraine war crisis has hiked oil prices which will reflect in rise of transportation costs globally. This adversity and similar in future frictions will be instrumental in increasing the construction costs furthermore. It is estimated that by 2023, real estate prices are expected to rise by 30%.
The sector’s attempt to decrease material cost through constant appeals is expected to find a sympathetic audience amongst policymakers. The industry has been requesting the Government of India to regulate prices, reduce taxes and allow easier imports of chief construction materials. Despite the surge in costs, the survey found that 92 percent of respondents are planning new launches in 2022. Around 96 percent of the developers would prefer to launch residential real estate in 2022.
Parameters for affordable housing in the future will determine India’s real estate market prices. Due to this highly competitive market, the best residential projects in Pune are already finding ways to offer homes at reasonable rates and are trying to reduce costs.
At Kohinoor Group Pune, we understand your dream living aspiration. Hence, the group is offering some premium residential projects in Pune at pocket-friendly rates (which may soar higher prices in the future). Along with good rates, there are several new residential projects in Hinjewadi that promise to redefine the everyday living testament. Here, living life is an indulgence that enriches every moment with comfort, peace, and happiness. To know more, get in touch today!
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