As compared to the rates in yesteryears, demand had picked up for buying houses rather than renting it. But the demand-supply matrix had changed the entire quotation of cost as earlier since the cost of raw material and labor was low, the Bangalore Builders were in the maximum profit. Wherein today as the demand has increased the real time for affordable houses and people are willing to buy the low budget house in Bangalore, builders have no option rather than to work on even the least profit which he can make considering the increasing material and labor costs. It is a dual hit for the builders and it is alarming, as on one side they need to keep up to the expectation of the customers along with a competition to the competitors. On the other hand, they are suffering from the hiked-up price of building materials. Below is the list of how it is going to affect the common man;
The rate per square foot may boom
As the number of affordable house in Bangalore is decreasing, people are also ready to compromise with ready to move in flats and studio apartments in Bangalore. The builders have a higher profit margin on the sale of a villa, a luxury apartment, on the other hand selling a low budget house in Bangalore may be the easiest thing but the fewer margins on the profit are what may haunt the builders. Hence, they hardly consider customers who require an affordable house between Rs.20 – 25 lacs.
An unsafe building can be alarming
In case, if a builder is offering a real cheap house in Bangalore in comparison to others, be very careful as you cannot be sure about what may be in the offering. Don’t trust anyone blindfolded rather go through the construction site. Do check the raw material quality, in case you are not that proficient, make a general market survey as a precaution is always better than cure. Saying this I mean buying an unsafe house and inviting an accident is less preferred than buying a bit higher cost house and being safe.
- The cost of the raw material may burn a big hole in the builder’s pocket:
As the cost of material used in the building is increasing in proportion to the labor, it will hamper the building industry and will burn a big hole in the builder’s pocket. It may be a case that it does not affect the bug builders equally, but small builders will definitely bear some loss because of this hiking cost.
- The low Budget house may become a dream only:
Will you invest your money in something which cannot reap profits for you? Definitely not, so dreaming of low budget houses can be a dream soon as builders may reduce investing the money in the low budget houses in Bangalore. As the low budget houses will reap fewer profits in comparison to that of luxury houses.
To summarize, we can say that a wise advice will be to go for a low budget house right away, in case you wish to buy one in this year. As later on, it may burn a big hole in your pocket.