Maharashtra developers seek 6-month extension from MahaRERA to complete projects; threaten to stop work if demands not met

Why are real estate developers upset? Zee Business Research analyst Ashish Chaturvedi reports.

Maharashtra developers seek 6-month extension from MahaRERA to complete projects; threaten to stop work if demands not met
The developers quantify that the prices per square foot have increased by Rs 400 - Rs 600.

MahaRERA Vs Real Estate Developers: There is a war ongoing between the Maharashtra real estate developer and the government. The builders of Maharashtra are upset and are threatening to stop the construction. Even many real estate associations have said that they are not buying raw materials like steel, cement, wire, cable, etc because of the significant rise in the raw material cost including steel and cement. Why are real estate developers upset? Zee Business Research analyst Ashish Chaturvedi reports.

Input cost inflation in the industry has been on the rise. That is why real estate developers have been requesting MahaRERA to extend the deadline of their projects by 6 months because developers are finding it difficult to complete the project.
According to a report, there has been a big jump of 40%-50% in the cost of raw materials like steel, cement, wire, brick, etc., said Chaturvedi. So, real estate developers want some relaxation.

The developers quantify that the prices per square foot have increased by Rs 400 - Rs 600. The cost effect is being seen here.
 
All real estate developers reported in Q3 that sales were great everywhere including Mumbai city but are now seeing a 40%-50% increase in the cost of expenditure, and this could prove to be a major challenge for real estate. Hence, the analyst recommended paying special attention to Mumbai-based real estate stocks like Macrotech Developers, Oberoi Realty, Kolte Patil, Raymond, Mahindra Lifespaces to check how their margins will be impacted when the Q4 results come out.

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Written By: ZeeBiz WebTeam
Edited By: Shivendra Kumar
Updated: Tue, Mar 22, 2022
03:09 PM IST
ZeeBiz WebDesk
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