Post pandemic the sales of residential property in mohali has increased, so are the prices. Mohali has become a rapidly growing real estate hub of North India. If you’re thinking about buying or investing in residential or commercial property in Mohali, this might be the right time.
According to the reports, prices may hike in upcoming days due to factors including constantly rising prices of raw construction material and shortage of labour due to pandemic protocols.
Confederation of Real Estate Developers of India (CREDAI) has expressed concern over the sustained rise of raw materials of construction, which includes steel and cement.
In fact, it’s very common that prices of materials & commodities rise up eventually whenever there is a consistent hike in fuel prices. However, Since 2020 there’s steady growth in the prices of construction material. Additionally, hold over of construction due to COVID-19 pandemic lockdown protocols, the shortage of required labour causing the direct hike of prices about 10-15% of construction cost.
The developers address this as a multifaceted issue because RERA does not give any green signal to increase the selling price even if the construction costs rise. On several occasions the CREDAI raised this issue on multiple platforms. They approached the various departments of the central government to express concern about the price hike.
In an effort to address this problem, CREDAI suggests allowing prices to escalate through a clause in buyer seller agreement. The other possible way could be if the government considers either permitting Input Tax Credit for real estate projects or rationalisation of GST on various construction raw materials from current price, this will help to stop hikes in price of residential properties with an immediate effect.
In conclusion, there is possible certainty of a 10-15% hike in prices of properties of all segments. If you’re planning to buy/invest in property, especially residential property in mohali, don’t waste your time waiting. You can discover residential and commercial projects of your interest at Real Wealth.
