Pune: Prospective homebuyers in Pune may have to brace for higher property prices after ready-mix concrete (RMC) suppliers proposed a rate hike across various concrete grades on May 9. Industry experts estimate that the increase could push up construction costs by Rs 250-300 per sqft.“A section of developers may absorb some of the cost in ongoing projects, but new launches will inevitably pass on the burden to buyers,” Nitin Deshpande, president of the Marathi Bandhkam Vyavasayik Association, said.The Pune RMC Association had halted operations on April 16, citing coordination issues with the Maharashtra Pollution Control Board (MPCB), Pune Municipal Corporation (PMC) and the police, which led to shortages at construction sites. Production restarted after the Pune police permitted RMC truck movement during peak morning hours in central city areas on Wednesdays, weekends and public holidays, subject to prior approval. The hike proposal came soon after.Credai Pune president Manish Jain estimated that the construction cost would increase by Rs 400-500 per sqft as most commonly used RMC grades had seen an increase of 30%. “Projects already sold and registered under RERA will continue to be honoured despite the financial strain. However, for upcoming launches, some price correction may become unavoidable to maintain project viability,” Jain said.Amit Paranjape, director of business development at Paranjape Schemes (Construction) Limited, said sustained increases would exert upward pressure on housing prices, particularly for new projects.
The Pune RMC Association had halted operations on April 16, citing coordination issues with MPCB, PMC and the police
Developers also highlighted the challenge of absorbing rising input costs. Rohit Gera, MD of Gera Developments, said homes already sold must be delivered at agreed prices, forcing companies to recover higher costs from unsold inventory. “This will have an inflationary impact on property prices,” he said.Industry leaders, however, said Pune remained a price-sensitive, end-user-driven market. “There is limited room for developers to increase prices significantly, as most buyers are purchasing homes for self-use,” Rohit Gupta, MD of Mantra Group, said.
