Chennai, 13th July 2022: The real estate industry in Chennai is witnessing a good demand be it in the commercial or residential sector from first time buyers post pandemic. This is very encouraging for the industry that had seen a dip in sales in the past. 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.
“This is the right time to buy a piece of real estate. 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 tonne 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.
While the Chennai Metropolitan Development Authority (CMDA) is implementing the single window system and has assured processing of MSB (Multi-Storey Building) files in 60 days, it is still early days and we wish and hope CMDA is successful in this. We are also hopeful that this is extended to layout developments as well.
The new team constituting Mr. A. Mohammed Ali, President – Elect, Mr. Mehul Doshi as Vice President, Mr. Abhishek Mehta, Vice President, Mr. Kruthivas P, Secretary, Mr. Mohamed Aslam Packeer, Treasurer, Mr. Arun M N, Mr. Ranjeeth Rathod, Mr. Viswajith Kumar, Mr. Ram Kumar, and Mr. Suman Voora as Executive members of CREDAI Chennai will focus on the following areas :- Ease of Doing Business, Skill Development, Consumer Grievances & Redressal Forum, and Corporate Social Responsibilities.