Prices of new homes for sale in Kolkata, India, are set to rise as developers look to make up for sharp rises in building costs.
According to the Times of India, firms in the city have warned asking prices will go up if raw materials hold firm.
Property investors who have already bought real estate in the city could therefore find property they are trying to sell increases in demand following hikes elsewhere in town.
Pradeep Sureka is president of the Bengal branch of the Confederation of Real Estate Association of India. Quoted by the Times of India, he said:
“There is no alternative but to raise prices.
“The price at which flats were sold a year ago have now become the construction cost. On average, project cost has gone up by 43 per cent.”
Property investment professionals from India and as far afield as the UK and US have recently begun targeting middle class Kolkata residents, according to Sindh Today.
The site reports some people are now heading beyond the city limits in search of more affordable homes.
The Barasat, Madhyamgram and Maheshtala areas are attracting particular attention from real estate professionals, according to Sindh Today.