Dream homes to get costlier

Dream homes to get costlier

NASHIK: Against the backdrop of increase in the prices of construction material, the cost of affordable homes in Nashik city has gone up by Rs 500 per square foot. The common man will have to bear the brunt of it. The projects that are currently underway are mainly hampered by all these price hike.

Ravi Mahajan, President, Credai Nashik Metro, said in a press conference held yesterday that about 40% of the total cost of any building is spent on steel and cement. Over the last one year, steel prices have risen by about 70 per cent and cement prices by about 25 per cent. At the same time, labour costs, among other things, have risen by about 40 per cent.

Due to the Unified Development Control and Promotion Regulation (DCPR) implemented last year, premium and ancillary charges are now being levied for stair case, passage, lobby, cupboard, club house, watchman toilet, driver’s room, which were earlier free, but its burden has also put on the sale price of the flat.

Similarly, royalties on secondary minerals have also been increased by 50 per cent. In Nashik city, people will have to buy houses at a higher rate of Rs.500 per square foot. He also said that the ongoing projects were mainly hampered by the current hike.

According to the government rules, even after the increase in the price of such construction materials, the builders cannot increase the selling price of the flat. Experts have also said that the stamp duty is likely to increase after April 1. Cement is currently subject to 28 per cent GST and steel and other construction materials are subject to 18 per cent GST.

Anant Rajegaonkar, Vice President, Credai National, informed that it is pursuing the Central government to reduce this rate and get its input credit.

“The government should also look into whether stockpiling does not increase steel and cement prices. Also, the rates of GST on all construction materials should be reduced so that the general public can afford houses,” said Jitubhai Thakkar, member of advisory committee of Credai National.

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