In 2005, when I was contemplating to build a house, a contractor friend quoted a construction cost of Rs 600 psft compared to Rs 800 sqft quote I was getting in the market. Now, the costs have crept up to Rs 1300 for normal construction and about Rs 1900 psft for super premium constructions. Where as the builders were operating at a margin of 60-70% in 2005-2007, it has come down to 22-26% now due to the increasing cost of construction and stagnant market.
No comments:
Post a Comment