Building a home is a dream cherished by many. It is mostly through financial assistance and savings that people set the foundation for constructing a home for themselves, keeping in mind the different types and nature of costs involved. In such a scenario, it is disheartening to see that home prices are set to be on the rise taking into account the increase in price of cement and steel. Let us explore how it is going to affect the prices of homes in the future and what steps can builders take to combat the same.
Rise in Prices of Cement and Steel
The unprecedented rise in prices of cement and steel can be attributed to a variety of factors. On the one hand, there has been a huge dearth in the production and supply of coal and pet coke, the raw materials used for producing cement and steel. The severe shortage of coal can be ascribed to the reduction in production of coal, which has come down by 76% as well as the decrease in import of coal due to the heightened prices in the international market.
Over the last year alone, the price of steel has gone up by Rs 20,000 per tonne, not including a recent hike to the extent of Rs 6000 per tonne as well. The price of cement has also become dearer with a bag of cement now Rs 50-60 higher. The rising prices of fuel have also played a part in causing this unprecedented increase in the price of cement and steel which in turn, increases the cost of transportation, thereby affecting the final price of the end products.
How is it going to affect the prices of Homes?
Such an increase in cement and steel prices will ultimately result in a commensurate increase in the price of home construction. Ever since January 2020, the prices of raw materials for home construction have been gradually increasing. With the COVID-19 pandemic and the lockdowns imposed all over the country, the delays in construction and production have also been a factor in shooting up the prices of homes to around 10-15% to what it was previously.
Builders Seeking Government Intervention
The builders in their individual and collective responsibilities through the organisation Confederation of Real Estate Developers’ Associations of India (CREDAI) have requested governments, both at the State and Central level to intervene and control the steady increase in these prices. Builders have requested governments to reduce the GST on cement and steel, which amounts to 28%, as well as the transportation cost that comes around to 12%, to no avail. Even though the governments seem reluctant to budge even after repeated strikes and requests, it is only through government intervention can we get a solution in such a scenario.
OMG Properties’ Budget Houses
In light of this, the prudent thing you can do as a home buyer is to buy a home that does not burn a hole in your pocket. Your best bet for buying budget homes in the state of Kerala is none other than OMG Properties.
OMG Properties offer a plethora of options, in every locality and style, for those looking to buy a home within their budget. If you are seeking to settle down in the fast paced and thriving city of Kochi, OMG Properties have two amazing and affordable homes – OMG Marbella in Angamaly and Amethyst Villas in Nedumbassery. In case you wish to buy a home in the tranquil beauty of Palakkad, look no further than Vattika Villas in Ottapalam or Dahlia Villas in Koottupatha. And if Thrissur is the place you want to be, OMG Properties presents to you Daffodil Garden Villas in Varadiyam, Thrissur.
Whatever be your location of preference, OMG Properties can give you affordable and luxurious budget homes for you! Check out our list of properties to find the home of your dreams.