Economic Factors of Construction Industry

  • Fluctuations in prices of inputs: Many builders tend to stop work when the prices of inputs like cement, iron etc goes up so as to wait for the time when they expect the prices will come down. This result in unnecessary delay in the work and the cost of wasting time would actually be more than the increase in price.
  • Changes in demand: Changes in demand due to factors like changes in disposable income of prospective buyers and inflation. Also with the easy availability of housing loans and tax exemption on loans the demand for houses is rising.
  • Future Growth & Resale Value: Any project must be located in an area that if      not fully developed must at least be on the way. This is because people prefer those areas having high resale value and will fetch them a good amount of gain.
  • Stamp Duty & Registration: Payments of Stamp duty followed by the registration of the agreement are two important acts when one enters into an agreement with a developer/seller. With the decrease in the stamp duty by 50%  it is considered as a good sign for Construction Sector.


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