Ahmedabad: Homebuyers in Ahmedabad may have to pay more for under-construction properties from July 1, as real estate developers have decided to increase prices by 5-10% amid a sharp rise in construction costs triggered by supply disruptions following the West Asia conflict.The decision was taken during a meeting of nearly 400 developers organised by Credai Ahmedabad on Monday. The meeting was convened to assess the impact of soaring raw material prices and decide the way forward as Credai’s earlier commitment to hold prices steady till the end of June approaches its deadline.Rajesh Vaswani, chairman of Credai Ahmedabad, said that prices of several construction materials have witnessed unprecedented increases after the conflict began.“Raw material prices have risen sharply, by up to 80% in the case of some products. Despite the pressure, developers chose not to transfer the additional burden to homebuyers immediately. However, the price hike has now become unavoidable. Based on the stage of the project, under-construction property prices will increase by 5-10% from July 1,” Vaswani said.The developers’ body has also approached GujRERA seeking a six-month extension in project completion timelines, citing escalating input costs and irregular availability of essential construction materials.According to Credai Ahmedabad, the prices of key materials such as cement, steel, tiles, aluminium, PVC pipes, paints, ready-mix concrete, cement blocks and waterproofing products have increased significantly, while supplies have remained uncertain.Ankur Desai, secretary of Credai Ahmedabad, said that the volatility in the supply chain has made it difficult for developers to maintain earlier project budgets. “Many construction inputs have become 30-80% costlier since the conflict started. Suppliers are unwilling to enter into long-term supply agreements because of the uncertainty in prices. Even if the war ends immediately, it may take six to nine months for the supply chain to return to normal,” Desai said.Industry sources said developers are also concerned about the broader economic impact of the conflict, including inflationary pressures and rising fuel costs.Desai added that overall construction expenses have gone up by nearly 20-25%, but developers are unable to pass on the entire increase to customers immediately.“We expect Ahmedabad’s real estate demand to remain resilient due to ongoing infrastructure development and the upcoming Commonwealth Games-related growth prospects, despite the price increase,” he added.
