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Today Date : Thursday, May 23, 2024

Chennai real estate witnesses rise  in demand:  CREDAI Chennai

Chennai real estate witnesses rise in demand: CREDAI Chennai

The real estate industry in Chennai is witnessing a good demand  in the commercial or residential sectors from first-time buyers after the pandemic. 

The time is now to buy a piece of real estate for these prices are extremely attractive said Mr. Sivagurunathan, President, CREDAI Chennai addressing the media today. The low prices advertised by builders today will not be seen in the coming months,  he added.

With materials alone accounting for nearly 65% of the total construction cost, it is a matter of concern for builders in general as materials constitute generally of steel, sand, cement, diesel, equipment, and water. 

In the past four years, steel per tone to cite an example has increased by nearly 65% in price while, bricks jumped 200 percent.“To add to these costs is the imminent hike in rate of interest.

 What was earlier a say 6 percent home loan offered by banks, NBFCs and HFCs is now nearly 8 percent. The chances of RBI hiking the repo rate further will make it more expensive for a home loan,” he pointed out. 

This combined with high absorption and reduced number of unsold stock and fewer new supply, price rise is imminent.