India’s construction industry, which claims to be the second largest employer in the country, has warned that real estate developers will not be able to absorb uncontrollable steel price rise, from INR 42,000 per tonne a year ago to INR 84,900 per tonne now, and many projects will be delayed or halted in the absence of intervention which will directly affect the consumersMoneycontrol News reported that claiming that prices of raw materials have increased by almost 40-45%, Credai Maharashtra has said that it is left with no option but to temporarily stop the purchase of input materials and shut construction work. CREDAI Maharashtra President Mr Sunil Furde said “The prices of steel, cement and other construction materials have been rising steadily over the last two years. These have now skyrocketed at a level, beyond the affordability of many developers, especially in the tier 2 & 3 cities. As many as 61 city association members who form a part of Credai Maharashtra have been left with no option but to temporarily stop purchases and shut down the construction activities.”CREDAI Maharashtra has also requested Maharashtra Real Estate Regulatory Authority Chairman Mr Ajoy Mehta to extend the last date of completion of projects by six months at least so that developers will get time to hold on till prices rationalize.Moneycontrol News also reported that developers in Delhi-NCR have decided to follow suit. CREDAI-NCR President Mr Pankaj Bajaj said "The costs of key raw materials such as steel and cement used in construction have gone up amidst global supply chain disruptions. After COVID-19, the current crisis is a dual blow on real estate developers as they are finding it extremely tough to deliver projects within the projected timelines and costs. For steel particularly, the situation is so bad that suppliers are not willing to take orders even at elevated prices. The sudden and rapid rise in costs has eaten into the thin margins of realty projects and rendered them unviable. The developers have decided to halt the purchase of materials fearing these elevated costs will ultimately result in projects getting stalled.”The Confederation of Real Estate Developers' Associations of India is the apex body of private Real Estate developers in India with 21 State Chapters & 221 City Chapters having 13,000+ members
India’s construction industry, which claims to be the second largest employer in the country, has warned that real estate developers will not be able to absorb uncontrollable steel price rise, from INR 42,000 per tonne a year ago to INR 84,900 per tonne now, and many projects will be delayed or halted in the absence of intervention which will directly affect the consumersMoneycontrol News reported that claiming that prices of raw materials have increased by almost 40-45%, Credai Maharashtra has said that it is left with no option but to temporarily stop the purchase of input materials and shut construction work. CREDAI Maharashtra President Mr Sunil Furde said “The prices of steel, cement and other construction materials have been rising steadily over the last two years. These have now skyrocketed at a level, beyond the affordability of many developers, especially in the tier 2 & 3 cities. As many as 61 city association members who form a part of Credai Maharashtra have been left with no option but to temporarily stop purchases and shut down the construction activities.”CREDAI Maharashtra has also requested Maharashtra Real Estate Regulatory Authority Chairman Mr Ajoy Mehta to extend the last date of completion of projects by six months at least so that developers will get time to hold on till prices rationalize.Moneycontrol News also reported that developers in Delhi-NCR have decided to follow suit. CREDAI-NCR President Mr Pankaj Bajaj said "The costs of key raw materials such as steel and cement used in construction have gone up amidst global supply chain disruptions. After COVID-19, the current crisis is a dual blow on real estate developers as they are finding it extremely tough to deliver projects within the projected timelines and costs. For steel particularly, the situation is so bad that suppliers are not willing to take orders even at elevated prices. The sudden and rapid rise in costs has eaten into the thin margins of realty projects and rendered them unviable. The developers have decided to halt the purchase of materials fearing these elevated costs will ultimately result in projects getting stalled.”The Confederation of Real Estate Developers' Associations of India is the apex body of private Real Estate developers in India with 21 State Chapters & 221 City Chapters having 13,000+ members
