India News | Ukraine Crisis: Housing Prices May Rise Due to Input Cost Pressures, Says CREDAI
Get latest articles and stories on India at LatestLY. Realtors' body CREDAI on Thursday said housing prices may increase in the coming months due to likely rise in rates of raw materials like cement amid the conflict between Russia and Ukraine.
New Delhi, Feb 24 (PTI) Realtors' body CREDAI on Thursday said housing prices may increase in the coming months due to likely rise in rates of raw materials like cement amid the conflict between Russia and Ukraine.
In a statement, CREDAI President Harshvardhan Patodia said: "Post the geo-political escalations, oil prices have surged, and stock markets have crashed globally."
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Oil prices have continued to rise over the last couple of months owing to concerns over disruptions in the global supply chain amid the crisis, he added.
"Additionally, it will further impact Indian cement makers as they were already reeling under the pressures of rise in costs of raw material and energy," Patodia said.
Cement makers will need to pass on the burden as 60-65 per cent of their business is either directly or indirectly linked to crude prices, the association said.
"Eventually, the impact will trickle down into the real estate industry as well," he said.
While the industry has been resilient, the CREDAI president said the rise in prices of construction raw materials by 20-30 per cent has forced developers to marginally increase the prices of projects.
"Industry forecasts indicate that prices will rise much more in the coming quarter and given the current crisis, the surge may grow manifold," Patodia said.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)