Impact of increasing raw material costs on the housing market
A question long being asked, “Will the current global scenario affect the housing market anytime soon?” We all saw steep interest rate cuts in the past two years that prompted many people to purchase their dream homes. But, is the time now to observe the increased cost of living?
A volatile global market has widespread implications for construction and manufacturing organizations. From ascending raw material costs to unanticipated fluctuations in energy costs, unforeseen obstacles make it difficult for manufacturers and builders to remain in the black and destabilize the supply chains.
With supplies of many construction raw materials becoming harder to secure, it is now up to manufacturers to either uncover new ways to mitigate the expenses, engross extra costs, or pass price gains along to the clients. Thus, there is a huge chance that housing, construction, and apartment purchasing are expected to get costlier in the coming days.
“We have been consistently witnessing a sharp increase in the raw material prices over the last one year and they don’t seem to be decreasing or stabilising soon,” said Mr. Harsh Vardhan Patodia, president of CREDAI National. “The developers may not be able to absorb escalating costs and, unfortunately, may have to pass on the burden to homebuyers.”
Some experts also believe that if input prices don’t stabilize soon, it will defeat the central government’s agenda to promote affordable housing. The Union government has been giving various tax breaks and incentives for buyers and developers to promote affordable housing in the last previous years.
So, what are your thoughts on this scenario? Do share this with your friends and family members who plan to purchase their next home soon.