Ahmedabad: Real estate developers in Ahmedabad are scheduled to meet on June 15 to decide whether to increase prices of under-construction properties, following a sharp rise in construction input costs due to supply disruptions from the West Asia conflict.
Meeting Called by CREDAI Ahmedabad
The Confederation of Real Estate Developers’ Associations of India (CREDAI), Ahmedabad, has convened the meeting, where developers will discuss both the possibility of a rate hike and the extent of any increase. Industry sources indicate that ready-to-move-in and completed projects are unlikely to see price changes, while projects launched in the past six months may see an increase of about 5% to 7%.
Deadline for Price Commitment Nears
The discussions come as CREDAI’s earlier commitment to hold prices steady until the end of June approaches its deadline. With input costs remaining high, developers are reassessing pricing strategies for ongoing projects, especially those in early-to-mid stages of construction.
Request for Extension from GujRERA
CREDAI Ahmedabad has also requested a six-month extension for project deadlines from GujRERA, citing surging raw material costs and intermittent shortages of key inputs. The body has highlighted price increases across a wide range of essentials used in residential construction, including cement, steel, tiles, aluminium, PVC pipes, paints, ready-mix concrete, cement blocks, and waterproofing materials.
Sharp Rise in Input Costs
According to CREDAI, suppliers have sharply raised rates since the conflict began, with several inputs becoming 30% to 60% more expensive, even as availability remains inconsistent. Developers say this combined impact is straining project budgets and making earlier cost projections hard to maintain.
Developer Perspectives
Rajesh Vaswani, chairman of CREDAI Ahmedabad, said the meeting will focus on arriving at a common stance. “Around 300 developers from the city will attend,” he said. “We will discuss the potential rate hike and try to see whether a consensus can be reached. Different projects are impacted differently by raw material price increases, and we will examine all issues.”
A senior developer said internal discussions within the industry are already in progress. “Completed projects will not witness any price rise as they are not affected by current raw material cost increases. However, projects launched in the past six months have been significantly impacted,” the developer said.
Ensuring Fair Competition
CREDAI is also expected to push for alignment among developers to ensure fair competition if price revisions are implemented.
