CEMENT PRICE HIKE TO DAMPEN REALTY MARKET
The real estate industry in MMR, which has been achieving record sales and launches in 2023-24, is at a critical juncture due to the anticipated hike in cement prices of Rs 10-15 per bag. Despite the surge in activity and demand within the real estate market, the rising cost of cement is expected to impact the sector's momentum. The cost escalation could lead to increased construction expenses, potentially affecting the profitability of ongoing and upcoming projects. Developers in the MMR, who have benefited from strong sales growth, might face margin pressures and could be compelled to adjust project pricing upwards. This situation could test the market's resilience, as higher property prices may alter buyer affordability and sentiment, possibly slowing down the rapid pace of growth observed in the past year. In conclusion, while the MMR real estate sector has shown robust performance recently, the impending cement price hike poses a significant challenge. It could influence future market dynamics, affecting both the cost structure for developers and the pricing landscape for consumers, potentially impacting the region's real estate growth trajectory.
Tags : real estate industry MMR construction expenses consumers market dynamics Kamal Shah Palladian