Properties in Noida likely to witness over 10% hike
Though many parts of Delhi-NCR witnessed price correction owing to recent slowdown, the property prices have remained stable in Noida. But the recent rise in the costs of construction materials seem to increase the property prices in Noida by around 10 to 15 percent over the next two quarters.
Ideal time to buy
For buyers and investors looking to buy properties in Delhi-NCR, it is the right time to invest in Noida property market. Though the prices have not altered significantly during the April 2013-October 2013 period, it does not indicate that the trend will remain. Considering the expenses at the developers’ end, market analysts are expecting a price-hike for multi-storey apartments in Noida
Rise in cost of construction materials
There has been significant hike in the prices of materials used for construction including sand, steel and cement, which have increased the financial burden on developers.
In the first week of September 2013, cement prices in Delhi-NCR were increased by 10 percent. The prices have increased from around Rs 210 per bag to Rs 275 per bag and it is expected the cement price would further rise to Rs 325 per bag in the near future, said Lalit Kumar Jain, chairman of Confederation of Real Estate Developers Associations of India (CREDAI).
Getting adequate supply of sand has become a major concern, mainly in the NCR. The availability of sand has largely dropped down owing to certain controversies and the recent ban on sand mining at many places. Since the supply is not matching the demand for sand, the price for sand has increased abruptly in the region.
Some real estate developers even opted for stone dust, which is a better alternative to sand. But this does not reduce the burden as the stone dust costs higher than sand. While a truck load of sand is usually available at around Rs 600-700 (including VAT), the same quantity of sand dust is priced over Rs 1,000.
Steel prices have been doubled in the past few years which has also had its impact on the construction sector.
Impact on real estate prices
Luckily, homebuyers are in a safe state as the rise in construction costs have not increased the property prices in the market. The reason behind this include piled up inventory of unsold properties and slowdown in the economy. Most of the developers, in the past few months, have been very keen to clear the unsold stock so that it would keep their liquidity levels stable. At a time when sales are slow, the developers would surely not want to frighten the buyers with higher price tags.
Festive season
As a result of the above mentioned market conditions, this festive season witnessed a variety of discount offers, freebies, gifts and price negotiations. As developers are keen to clear the inventories, the buyers got opportunity to get the best deals, opine market experts. At this condition, resale market offers better deals compared to under construction projects.
