Material costs hiking Bangalore's real estate prices

An increase in the price of building materials has given rise to the prices of real estate properties in Bangalore. The price rise is observed not only in villas but also in apartments, row houses and office spaces in the city. The escalation of prices of building materials leads to the increase in the construction cost which will also have a rising effect on the property prices in Bangalore. In such a case, it is beneficial for the property buyers to not waste time and deal in investing now in real estate and fast-track the property purchasing decision. There are many ready to move flats in Sarjapur Road which are left unsold or in the loop mostly because of the higher price and buyers not showing any interest in them.

Materials like the steel, which is an important component required in the construction industry, the prices of steel has jumped up by about 20% along with the prices of plywood which increased by five percent and the prices of sanitary products by around 10-15%. These rises in prices have led to an increase in the prices of properties. Similarly, the prices of reinforced steel panels have increased a lot to about 33.33 per cent affecting the construction industry of Bangalore a lot. Many international as well as national companies has surged their steel prices in the long and flat steel forms keeping in view the rise in global steel prices. The customers feel these rises in prices of construction materials and commodities hard when the real estate developers increase the prices of the housing units. This is because of the increase in price by their subordinates like the suppliers, effective sub-contractors and associate contractors.

Experts are of the view that the rise in price of the building materials is a clear indication of the growth of the construction sector at a steady higher pace with the building industry expanding itself with good and new projects and property sites. According to them, the rising price situation reflects a good outlook for the construction sector as well as the real estate sector of Bangalore. This is because with time, these ready to occupyflats in Sarjapur Road and high profile projects would then be most in demand by the luxurious and elite purchasers of property. However, still before the price sky rockets itself to a unreachable height, it is essential the buyers close their purchase deal with the current high prices providing initial payments at the current price value. 

In addition to the property price rise, there has also been a substantial steady rise in the prices of land. The input costs of the constructions along with the construction materials and labour costs have also risen up to about 30 per cent. Along with that, the excise and service tax interest rates have also risen up which lead to the increase in property prices. There are many expert analysts who blame the shortage of efficient, affordable and mid-range residential properties to the price rise. As there is a decline in the availability of affordable housing, real estate developers have switch to selling mid range and luxurious housing units which created a gap between the demand and supply factors and increased prices of real estate in Bangalore.