Argenio antao - Latest News Update, Information, Photos & Videos on Argenio antao at Lokmat Times

New Delhi, March 29 Over the last one year, developers' average cost of construction has risen 10-12 per cent, owing to higher input cost due to supply-side constraints. This surge in cost comes at a time when developers have been under pressure due to higher debt and liquidity concerns over the last few years.The cost of key materials like cement and steel have risen over 20 per cent yearly as of March 2022. These constitute a predominant share in the total cost of construction. So far, developers have been cautious about increasing prices as the market was recovering from the aftermath of Covid-19. However, developers have now started feeling the pinch of rising cost and started reviewing their pricing strategy, Colliers said in a report."With rising material cost, developers will be compelled to increase prices as construction materials account for about 2/3rd share in the total cost of construction. Developers have already been operating on thin margins over the last few years."The rising cost will impact developers in the affordable and mid-market segments relatively more as they are already operating on lower margins. With wholesale price inflation (WPI) and material cost, both seeing a double-digit rise, the cost of construction can rise by a further 8-9 per cent by December 2022," said Ramesh Nair, CEO, India & Managing Director, Market Development, Asia, Colliers.Residential projects in the affordable and mid-income segments carry relatively lower margins and are price sensitive. Hence, any major increase in input cost can put pressure on developers to pass it on to end-users.On the other hand, Grade A industrial and warehousing facilities are already seeing robust demand from E-commerce players. Increase in construction cost is likely to put an upward pressure on rents due to limited availability of quality assets."Developers are facing high costS but are cautious to increase the price for end users as it might impact overall demand. However, if the escalated cost persists, developers may have to pass on increased overheads to the end users. Some intervention from the government in the form of lower import duty can provide some relief to developers, especially in segments with low margins," said Argenio Antao, Chief Operating Officer, Colliers India.Overall, in the market, large Grade A developers will be able to withstand the rise in cost and may pass it on depending on the demand dynamics. However, smaller developers may seek to enter joint development agreements for specific projects to tide through the high cost.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Home

City

Latest News

Cricket

LT Premium

National

International

Maharashtra

Opinions

Chhatrapati Sambhajinagar

Nagpur

Entertainment

Photos

Business

Technology

Sports

Lifestyle

Social Viral

Lokmat Games

Health

Pahalgam Terror Attack

Tahawwur Rana

IPL 2025

CM Devendra Fadnavis

Mumbai Local

Weather Update

Argenio Antao, NewsFOLLOW

Argenio antao, Latest News

Business :Colliers appoints Rao Srinivasa as Managing Director for Data Centers in India

Leading diversified professional services and investment management company Colliers (NASDAQ: CIGI) (TSX: CIGI) today announced the appointment of Rao Srinivasa as Managing Director, Data Centers, with immediate effect. ...

Business :Colliers appoints Rao Srinivasa as Managing Director for Data Centers in India

Leading diversified professional services and investment management company Colliers (NASDAQ: CIGI) (TSX: CIGI) today announced the appointment of Rao Srinivasa as Managing Director, Data Centers, with immediate effect. ...

International :Surging cost of construction likely to push up real estate prices

New Delhi, March 29 Over the last one year, developers' average cost of construction has risen 10-12 per ... ...