— PHOTO: K. MURALI KUMAR
The prices are up
Current scenario: Metro Rail work has not brought down real estate prices.
When there is a boom in the jobs sector with the economy growing at eight per cent, there is no way the demand for housing can be sluggish, according to CREDAI (Confederation of Real Estate Developers’ Association of India). It is only that genuine buyers were waiting for a drop in prices which never happened. The reality is, instead of going down, Bangalore market has actually stabilised.
Since January 2007, the cost of construction materials, labour and other essentials has gone up very steeply. There has been a 56 per cent increase in steel prices, 24 per cent increase in cement prices, and a 35 per cent increase in labour cost with an overall interest rise of 20 per cent per annum.
The price as of April 2008 stood at: Steel — Rs. 42,000 per mt; cement — Rs. 248 per bag; labour — Rs.472 per sq. ft.; and interest – 13.25 per annum.
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