Housing Prices Will Not Drop, Says Credai

KOCHI:
Credai Kerala Chairman Hasseb Ahmed and Secretary General Dr. Najeeb Zackeria after the recently concluded Governing Council meeting at Kochi, said that as against the common perception of price drop in the housing sector after demonetization, the cost of input materials like steel have actually started going up. Over the past few days the price of steel & other input materials have increased sharply. The cost of Labour & materials form the major input cost of a building and hence the general talk that housing prices will come down is unfounded. This could lead to an increase in housing prices in the near future.
Credai welcomed the decrease in home loan rates by the financial institutions which will spur the demand for housing. The Governing council discussed various concerns of Real Estate industry, particularly about the considerable delay in getting approvals from various government departments like Local bodies, FIRE, Environmental Clearance & water connection from KWA which is adding to the cost burden of the Developer. Credai has decided to take up the above issues with the government to implement a
single window clearance for the industry which will benefit the ease of doing business in the State.