increase in the rate of lands and increasing costs of land in the major cities of Madhya Pradesh, it’s
an issue of tension for the developers. Currently, cost of constructing per sq. ft. is Rs. 1000 which was
Rs. 850 per sq. ft. earlier. Within a year’s duration, the rates of raw material have increased by 20-25
percent. Henceforth, the demand has decreased in the market.
In both the cities Bhopal and Indore, there has been an unexpected increase in the rates of property
by 50 percent within a year. Experts say that expensive loans are also one more hindrance for the
developers. “Increasing rates of land and raw material is pressurizing on an increment of the cost. Along
with it, liquidity in the market has lessened. Also, the real estate developers have started withdrawing
the projects.” Last year, if a flat’s rate was 16 lacs have increased to 19-20 lacs in the Capital city of
There has been an increment by 20-25 percent in terms of raw material used for construction when
compared to last year. Also, the concrete rate per sq. ft has increased to Rs. 19 from Rs. 16. Similarly,
the rate of a bag of cement has reached around Rs. 290 from Rs. 230.
Posted: 20 Sep 2012 05:35 AM PDT
By Accommodation Times Bureau