CREDAI Surat Announces Up to 10% Property Price Hike from July 15 Amid Soaring Construction Costs

SURAT : Homebuyers planning to purchase residential property in Surat have just days left before paying significantly more. In a major decision that is expected to impact the city’s real estate market, members of the Confederation of Real Estate Developers Associations of India (CREDAI) Surat have unanimously decided to increase residential property prices by up to 10% from July 15, citing a sharp rise in construction costs, escalating labour expenses and a growing shortage of skilled workers.

The announcement comes at a time when developers say they are grappling with unprecedented cost pressures driven by rising fuel prices, which have pushed up the prices of cement, steel, iron, aluminium, plumbing materials and other essential construction inputs. Higher transportation and manufacturing costs, coupled with increasing wages, have further squeezed project viability.

Addressing a press conference, CREDAI Surat Chairman Sanjay Mangukiya said developers had absorbed much of the rising costs over the past several months in the hope that market conditions would improve. However, the continued surge in input costs has left the industry with little choice but to revise property prices.

“Developers have so far tried to absorb much of the higher costs, hoping market conditions would stabilise. However, with no indication of input costs easing in the near future, passing on a part of the increased construction cost through property prices has now become unavoidable,” Mangukiya said.

He explained that the actual increase would depend on the stage of construction of each project, but confirmed that both ongoing and upcoming residential developments would be affected. Newly launched projects are expected to witness the highest revisions, with prices likely to rise by ₹200 to ₹400 per sq. ft., depending on the location and nature of the project.

CREDAI Surat President Dr. Jignesh Patel said the decision was taken collectively to ensure buyers are aware of the realities facing the construction industry.“Significant increases in the prices of cement, steel, aluminium and other building materials, along with rising labour costs and a shortage of skilled workers, have substantially increased construction expenses. As a result, residential property prices in new launches and under-construction projects will need to be revised upward by approximately 5% to 10%,” he said.

Dr. Patel clarified that the purpose of the announcement was not to seek government concessions but to inform consumers about changing market conditions. He added that while any future changes in GST, stamp duty or other taxes would be a separate matter, developers currently have limited options to offset rising costs.