Guwahati: The prices of all flats across the State are set to go up by Rs 600 per square foot after Bohag Bihu.

Addressing a press conference here today, the president of Assam Real Estate and Infrastructure Developers Association (AREIDA) PK Sharma said that the effect of the increase in raw material prices has put real estate developers in trouble, forcing them to raise property prices.

"We have been constantly witnessing a sharp increase in the construction raw materials prices, such as those of cement and steel, over the last two years and they do not seem to be decreasing or stabilizing soon. The average increase in raw material costs (including labour) is 37.50 percent in the last two years," he said.

The normal apartments may cost between Rs 3600 and Rs 4600 per square foot now.

"The décision has been taken to cover the increased cost of construction. There are no other options available with us," he added.

There has been a drastic increase in all raw materials, including steel by 90.70 percent, cement by 15.07 percent and sand by 36.36 percent, which has negatively impacted the construction projects,

"After Covid-19, the current crisis is a dual blow on real estate developers as they are finding it impossible to deliver projects within the projected timelines and costs for steel particularly, the situation is such that suppliers are not willing to take orders even at elevated prices. All construction works, whether Prime Minister's Awas Yojana or infrastructure projects of the government are severely impacted," Sharma said.

Sharma further said that the association also pressed for the inclusion of an escalation clause in the builder-buyer agreement.

"If a promoter is rendered bankrupt due to abnormal increase in construction costs or for any other legitimate reasons, it will be impossible for him to complete the project and this can never be in the best interest of the flat chaser," he said.

The association also applied to the Real Estate Regulatory Authority (RERA), Assam for an extension of six months in the project completion period as projects across the State have been disrupted due to the abnormal increase in the prices of raw materials.