Rise in property price by 10-15% in Goa says Credai

Credai-Goa said in the near term, a loss to tackle the soaring prices will push the state’s real estate prices by at least 10-15%.

On Wednesday the Confederation of Real Estate Developers Association of India (Credai) persuaded the government to rein in the escalating prices of raw materials which are increasing rapidly including prices of cement and steel.

Credai-Goa said in the near term, a loss to tackle the soaring prices will push the state’s real estate prices by at least 10-15%.

Developers said once the agreement has been approved there is no provision in the Real Estate Regulatory Act and norms to modify and increase the price of an apartment. Due to this, they are confronting several problems.

Credai-Goa president Nilesh Salkar said “We have been consistently witnessing sharp increases in the raw material prices over the past year and they don’t seem to be decreasing or stabilizing shortly,”

He further added “The developers may not be able to absorb escalating costs and unfortunately will have to pass the burden to homebuyers,”

During the festive period sales of residential properties saw a rebound, but since last January developers have also seen prices of almost all materials and items skyrocketing invariably.

Salkar said, “Add to this the delays in construction caused by lockdowns, curfews, and shortage of labor causing increased labor costs, led to a direct increase in construction cost anywhere between 10-15% in the past 18 months.”

By permitting a clause in the buyer-seller agreement, credit has proposed that the centre should authorize escalation of prices.

“The government may also consider either allowing an input tax credit for real estate projects and rationalization of GST on various construction raw materials from their current rates as this would bring down the prices of residential properties,” Salkar said.