That's realty: Steep rise in flat rates

That's realty: Steep rise in flat rates
DH News Service, Bangalore:

Realty prices in the City will shoot up from June 10 as land developers have announced 3 to 8 per cent hike in apartment prices. The new rates will be applicable to all projects of Confederation of Real Estate Developers’ Association of India (CREDAI), Karnataka.

CREDAI (Karnataka) President A Balakrishna Hegde told reporters on Wednesday the increase in construction costs had forced the builders to increase the prices. “Since January 2007, the input cost of various construction materials, labour and other costs have gone up steeply. While the steel prices have seen a 56 per cent increase, cement prices and labour costs have gone up by 24 per cent and 35 per cent respectively. This is apart from the hike in interest on bank loans,” he said.

“We have reluctantly decided to increase the price of present projects by three to eight per cent to ensure the quality is maintained. If we do not resort to the increase, it will hurt promoters very badly,” Hegde said.
He, however, said what was being passed on is only a small portion of the increased cost of construction “as the developers do not want purchasers to bear the entire burden”.

Unchanged
The new rates, to be effective from June 10, will be in the range of Rs 75 to Rs 500 per square feet, depending on the locality and size of the project. The prices had remained unchanged for the last 16 months, he said.
As CREDAI realty expo is being held from May 31 to June 1, purchasers will be get an opportunity to avail of the old rates there. The increase is not applicable to deals already finalised, he said.

CREDAI (Karnataka) Secretary S Suresh Hari refuted reports that Bangalore's real estate market is sluggish. “When there is a boom in the job sector and the economy is growing at the rate of 8 per cent, there is no way the demand for housing can be sluggish. It is only that genuine buyers are waiting for a price drop that never happened.”

Name change
CREDAI (Karnataka) is the new name of Karnataka Ownership Apartments Promoters Association (KOAPA), the trade body of organised real estate developers and builders in Karnataka.That's realty: Steep rise in flat rates
DH News Service, Bangalore:

Realty prices in the City will shoot up from June 10 as land developers have announced 3 to 8 per cent hike in apartment prices. The new rates will be applicable to all projects of Confederation of Real Estate Developers’ Association of India (CREDAI), Karnataka.

CREDAI (Karnataka) President A Balakrishna Hegde told reporters on Wednesday the increase in construction costs had forced the builders to increase the prices. “Since January 2007, the input cost of various construction materials, labour and other costs have gone up steeply. While the steel prices have seen a 56 per cent increase, cement prices and labour costs have gone up by 24 per cent and 35 per cent respectively. This is apart from the hike in interest on bank loans,” he said.

“We have reluctantly decided to increase the price of present projects by three to eight per cent to ensure the quality is maintained. If we do not resort to the increase, it will hurt promoters very badly,” Hegde said.
He, however, said what was being passed on is only a small portion of the increased cost of construction “as the developers do not want purchasers to bear the entire burden”.

Unchanged
The new rates, to be effective from June 10, will be in the range of Rs 75 to Rs 500 per square feet, depending on the locality and size of the project. The prices had remained unchanged for the last 16 months, he said.
As CREDAI realty expo is being held from May 31 to June 1, purchasers will be get an opportunity to avail of the old rates there. The increase is not applicable to deals already finalised, he said.

CREDAI (Karnataka) Secretary S Suresh Hari refuted reports that Bangalore's real estate market is sluggish. “When there is a boom in the job sector and the economy is growing at the rate of 8 per cent, there is no way the demand for housing can be sluggish. It is only that genuine buyers are waiting for a price drop that never happened.”

Name change
CREDAI (Karnataka) is the new name of Karnataka Ownership Apartments Promoters Association (KOAPA), the trade body of organised real estate developers and builders in Karnataka.