Cost of real estate properties will increase
With the increase in input cost for the real estate industry, a rise in the property cost is expected in the real estate market in the country.
With the hike in service tax, the cost of cement, steel and the labour wages have increased sharply in India.
As a result of the rise, the scope of any cost reduction is disappeared for the real estate market.
According to the president of The Confederation of Real Estate Developers’ Associations of India, the construction cost of real estate sector has been increased by 50-60% in last few months.
The labour wages also have been increased as the supply of skilled and unskilled labour has been reduced in this period.
The reduction in labour supply and the increasing cost of construction material is became a constraint for the developers to complete the residential projects in time.
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Source : Economic Times
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