Real Estate Sector Grapples with Rising Input Costs
The recent surge in steel and cement prices has sent shockwaves through the Indian real estate sector, particularly affecting those constructing their 'dream houses' and aspiring homebuyers. The global metal price hike has exacerbated the situation.
### Escalating Costs, Plummeting Demand
The fallout of rising input costs has led to a significant escalation of expenses, severely impacting demand among the middle and upper-middle-class segments. The lower strata of society has been even harder hit.
**Developer Conundrum**
The real estate market is in disarray, with housing demand experiencing a sudden decline. Developers are now faced with the dilemma of whether to revise property prices or wait for market stabilization.
### Expert Insights
Vineet Manchanda, Managing Director of Delhi-based Manchanda and Manchanda Builders, highlighted the far-reaching effects of the rising inflationary trend on commodity prices, ultimately affecting the common man's buying power.
> “The increase in raw material prices has adversely impacted both developers and end-users in the real estate sector, painting a disturbing picture,” Manchanda added.