With the increase in input costs across markets, real estate builders across the country are looking for new technologies to control construction costs. Real estate sales are seeing reduced sales as costs rise across the country.
It has been noticed that many real estate developers are investing in plants, which manufacture pre-fabricated walls and ceilings; while the others are bringing in methods which double the pace of construction, and reduce the requirement of steel. These new innovations are required, as there has been a sharp slide in profit margins for developers in the past few quarters.
According to our sources, Sanjay Dutt, the executive managing director of South Asia property advisory firm Cushman and Wakefield said that developers are finding various ways to reduce cost. The cost input involving cement and steel has gone up by more than 35-40 percent over the past two years and labor rates have also more than doubled.
RK Arora, the managing director of a Noida based builder said, “Margins are down by 50 per cent for us, because of higher commodity prices and slower home sales”. In order to speed up construction, builders have invested in a new shuttering technology which helps in completing a construction slab in seven to eight days.