Rising inflation and increasing cost of raw materials used in construction have created massive problems in balance sheets of many real state companies. Despite facing enormous loss most of the firms are on their old commitment of delivering houses on original rates set up at the time of booking. According to KC Naik,president (CREDAI) has currently laid down 260 housing projects and very shortly two ore projects will be operational. Clarifying his stand Mr Naik repeated that all housing units will be delivered to customers on preordered basis and no new prices will be imposed. He also said his policy is to finish up projects soon if the cost of raw materials goes high. Other real state owners accepted that there has sharp declination in profit margin on each project.
The cost of raw materials has jumped up putting extra pressure on builders and they are forced to complete projects earlier. The price of essential raw material like cement, sand and cost of increased have increases from 20 to 100%.As a consequence of it other construction materials like flooring of tiles, slab building and steel prices have shocked everyone. This otherwise have builders left with no other option but to accelerate the rate of project completion.
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