PUNE: Homebuyers in Pune may face rising property prices following a proposed rate hike by ready-mix concrete (RMC) suppliers for various concrete grades on May 9. Experts suggest that this increase could elevate construction costs by Rs 250-300 per square foot.
“While some developers may absorb part of the costs for ongoing projects, new launches will likely pass the added burden on to buyers,” commented Nitin Deshpande, president of the Marathi Bandhkam Vyavasayik Association.
The Pune RMC Association previously halted operations on April 16 due to coordination issues with the Maharashtra Pollution Control Board (MPCB), Pune Municipal Corporation (PMC), and the police, resulting in supply shortages at construction sites. Operations resumed after the Pune police allowed RMC truck movements during peak hours in central areas on Wednesdays, weekends, and public holidays, with prior approval required, shortly before the hike proposal was made.
Credai Pune president Manish Jain predicts construction costs could rise by Rs 400-500 per square foot, as most common RMC grades have already increased by 30%. “Projects sold and registered under RERA will be honored despite the added financial pressure. However, upcoming launches may require some price adjustments to ensure project viability,” Jain explained.
Amit Paranjape, director of business development at Paranjape Schemes (Construction) Limited, noted that continued price increases will likely push housing prices higher, especially for new projects.
Developers are also grappling with the challenge of accommodating rising costs. Rohit Gera, MD of Gera Developments, remarked that homes sold must be delivered at the agreed prices, compelling companies to recover higher costs from unsold inventory. “This will likely lead to inflationary pressure on property prices,” he added.
Nonetheless, industry leaders pointed out that Pune remains a price-sensitive, end-user-driven market. “Developers have limited capacity to raise prices significantly since most buyers are seeking homes for personal use,” stated Rohit Gupta, MD of Mantra Group.
