Developers in Gujarat expect property prices to rise by Rs 400-500 per square foot due to significant increases in raw material costs, including steel and cement.
Water shortages are impacting real estate construction, especially in urban areas. Increased costs for water are driving up property prices and potentially halting projects.
The recent budget announcement has left many industries, including real estate, dissatisfied with a lack of significant changes or incentives for foreign investments. The budget's provisions are seen as inadequate to combat the ongoing recession.
Housing demand in tier-II and tier-III cities plummeted by 35% in the first half of the fiscal year, primarily due to increased borrowing costs, as per Assocham's assessment.