Credai Chennai feels home prices to rise due to rising input costs

Confederation of Real Estate Developers' Association of India has said property prices could rise due to rising input costs. Raw materials like sand, which was earlier available at Rs 35 per cubic feet was being sold at Rs 135 per cubic feet while a cement bag which costs Rs 270 was being sold at Rs 330 per bag, CREDAI Chennai, President, Suresh Krishn said. "Credai Chennai feels there will be a rise in the property prices that cannot be avoided due to rise in raw material costs", Krishn said in a press release. Real estate developers would be 'compelled' to pass the additional input costs to home buyers, he said. Steel prices have also gone up from the earlier Rs 34,000 per tonne to Rs 47,000 per tonne. The overall increase in construction cost was expected to be around Rs 400 per square foot, he added.