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But developers say rising costs of borrowing and construction input has put pressure on their margins that a 10-15% increase in property prices by year-end is possible. Normally the price escalation is about 3-4% per annum. But in the past six months, the input costs have risen by 7%. "The average cost of construction has increased by Rs 150 per sqft due to sharp increase in cement and steel prices. We have to pass on the cost to customers" said Sushil Mantri, president of CREDAI-Karnataka on the sidelines of a two-day Credai Realty Expo that began here on Saturday. ..... ....some blah blah...by MDs of some RE firms...... ..... Some visitors to the expo appeared to be in no mood to make a quick purchase. "Though there are some options in the Rs 50-60 Lakh bracket, I'm not sure I want to buy right now. I'm hoping to see a price correction," said Ms Poonam, an IT professional. For folks like Ms Poonam, Raj Menda, MD of RMZ Corp, raises some hope: The real estate market has a six months lag effect. If the so-called pain continues, developers who are not able to hold out may indulge in price correction by early next year. ----------------------------------------------------- I can wait for 6 months and more..... :) Every weekend there is some or other RE expo in Bangalore. This shows how desperate these guys are getting. Till about last year, they were so very arrogant, now if they get your number, they will keep calling you daily and literally pleading.[/QUOTE] Irrespective of what developers say, I think the cost has to eventually be governed by Demand and supply. If the buyer (In general) cannot pay or does not want to pay at the price, does it matter whether the builder has borrowed money at 10% or 25%? I think it is their last ditch effort to scare people into buying." 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Originally posted by mymarji
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Following is right from todays Sunday TOI Bangalore Edition:
Input costs rise; real estate to be dearer
Bangalore: Property analysts wisdom is that with less demand property prices will drop in the next few months. But developers say rising costs of borrowing and construction input has put pressure on their margins that a 10-15% increase in property prices by year-end is possible.
Normally the price escalation is about 3-4% per annum. But in the past six months, the input costs have risen by 7%. "The average cost of construction has increased by Rs 150 per sqft due to sharp increase in cement and steel prices. We have to pass on the cost to customers" said Sushil Mantri, president of CREDAI-Karnataka on the sidelines of a two-day Credai Realty Expo that began here on Saturday.
.....
....some blah blah...by MDs of some RE firms......
.....
Some visitors to the expo appeared to be in no mood to make a quick purchase. "Though there are some options in the Rs 50-60 Lakh bracket, I'm not sure I want to buy right now. I'm hoping to see a price correction," said Ms Poonam, an IT professional.
For folks like Ms Poonam, Raj Menda, MD of RMZ Corp, raises some hope: The real estate market has a six months lag effect. If the so-called pain continues, developers who are not able to hold out may indulge in price correction by early next year.
-----------------------------------------------------
I can wait for 6 months and more.....
Every weekend there is some or other RE expo in Bangalore. This shows how desperate these guys are getting. Till about last year, they were so very arrogant, now if they get your number, they will keep calling you daily and literally pleading.
Input costs rise; real estate to be dearer
Bangalore: Property analysts wisdom is that with less demand property prices will drop in the next few months. But developers say rising costs of borrowing and construction input has put pressure on their margins that a 10-15% increase in property prices by year-end is possible.
Normally the price escalation is about 3-4% per annum. But in the past six months, the input costs have risen by 7%. "The average cost of construction has increased by Rs 150 per sqft due to sharp increase in cement and steel prices. We have to pass on the cost to customers" said Sushil Mantri, president of CREDAI-Karnataka on the sidelines of a two-day Credai Realty Expo that began here on Saturday.
.....
....some blah blah...by MDs of some RE firms......
.....
Some visitors to the expo appeared to be in no mood to make a quick purchase. "Though there are some options in the Rs 50-60 Lakh bracket, I'm not sure I want to buy right now. I'm hoping to see a price correction," said Ms Poonam, an IT professional.
For folks like Ms Poonam, Raj Menda, MD of RMZ Corp, raises some hope: The real estate market has a six months lag effect. If the so-called pain continues, developers who are not able to hold out may indulge in price correction by early next year.
-----------------------------------------------------
I can wait for 6 months and more.....

Every weekend there is some or other RE expo in Bangalore. This shows how desperate these guys are getting. Till about last year, they were so very arrogant, now if they get your number, they will keep calling you daily and literally pleading.
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