Property News in Delhi NCR | Prices in Noida may increase by 10-15% in 6 months
The prices of residential properties in Noida may not have gone down as expected, but they have remained stable in the past 6 months. Is it a sign of correction in the sector and is the right time to buy? Considering the fact that there is a reported increase in the cost of construction and operating expenses at the developers’ end.
Probably, this is the right time to buy property in Noida. According to experts, the prices of multi-storey apartments are likely to increase. “We can expect an increase of 10-15 per cent in the next 5-6 months,” said Deepak Batra, Propworld.
Cement prices in the National Capital Region (NCR) were hiked by 10 per cent in the first week of September 2013. “Cement prices have increased from Rs 210 to Rs 275 over the past few days, and indications are that they will go up to Rs 325 per bag in the near future,” said Lalit Kumar Jain, chairman,
Confederation of Real Estate Developers Associations of India (CREDAI).
Experts informed further that steel prices have almost doubled in the past couple of years. Availability of sand, especially in the National Capital Region (NCR), has considerably gone down, due to controversies and subsequent ban on sand mining at many places.
“Since sand is not available easily, a number of real estate developers have no choice but to pay higher-than-normal prices,” Abhay Kumar, chairman and managing director, Grihapravesh Buildteck Private Limited, informed. “In fact, some have resorted to stone dust, which is better alternative to sand,” he added.
A full truck load (200 cubic yard) of sand generally costs Rs 650-700 including the value added tax (VAT), and the same amount of stone dust costs more than Rs 1,000. Since, stone dust is relatively costlier than sand, its subsequent impact is there on the cost of construction. However, the escalation in cost is not passed on to the customer.
Experts from the industry further inform that there are pressures on margins but developers are not in a position to increase prices. In fact, they are keen to clear their excess inventory, in order to raise finance and keep the ball rolling.
This is one of the reasons how a home buyer could find a number of offers in this festive season, which offer various type of freebies, assured gifts and discounts on prices. “At this point in time, a customer could negotiate on prices and get discounts in the range of 5-10 per cent,” adds Batra.
In the current scenario, a buyer should opt for projects which are near completion. One could also check the resale market, shortlist 4-5 properties and negotiate to get the best-possible deal,” said Sandeep Katiyar, chief executive officer, Century 21 India.
Vikram Jethwani, Magicbricks.com Bureau
Posted on November 5, 2013, in Real Estate and tagged Flats in Delhi NCR, Flats in Noida, Real Estate Company in India, Real Estate India, Sanjay Rastogi, Sanjay Rastogi Builder, Sanjay Rastogi Builders. Bookmark the permalink. Leave a comment.