CREDAI Hyderabad urges government to regulate material cost prices

Hyderabad, January, 9 2018: CREDAI (Confederation of Real Estate Developers’ Associations of India), Hyderabad has urged the government to intervene and stop the cartelization of raw material suppliers otherwise the prices of real estate will increase by about 10 per cent on a conservative estimate.

Hyderabad is known to be the cheapest but there has been a sudden escalation in building material prices of Steel and Cement between 20-25 per cent since the last one and half month and thus the projects in the city became costlier by about 10-12 per cent, CREDIA Hyderabad General Secretary P Rama Krishna Rao said on the sidelines of the curtain raiser meeting for the CREDAI Hyderabad Property show 2018 to be held here between March 2-4, on Friday night.

Mr Rao said that “in the last 2 months the raw material suppliers have formed a cartel to rapidly increase the prices of critical raw materials like Steel, Cement. He pointed out that steel prices have shot up from around Rs 38,000-39,000 per tonne to Rs 50,000 per tonne in the last 40-45 days and similarly cement prices that were hovering at around Rs 220-230 per bag have increased to around Rs 270 per bag in the last three to four months.
Even as there is a spike in cement and steel prices, the realty industry is also facing a shortage of sand, he said.

Hyderabad is getting a global prominence as a site for largest business establishments for MNC’s and a vibrant and rapidly growing local entrepreneurship ecosystem driving the growth and job creation in the city, he said.

We are hopeful that the city is likely to witness a significant demand for housing in the coming few years, he stated. Against this backdrop, we are planning the 6th Edition of the most credible – CREDAI Hyderabad Property Show which will be a golden opportunity for the customers to make the most of the present low property prices at Hyderabad, he said.

UNI