The price of the land has been increasing constantly but not only that is increasing the real estate price. All the materials cost has been constantly increasing as well as the labor cost has been increasing. The price of the cement has been doubled in the last 5 years, as well as other building materials.
PC: Pixabay.com
And that's why if you see the apartment cost from the last 5 years, it has been increasing continously. The apartment which used to cost around 80 Lakhs is now more than 1.5 Crore in the last 5 years. And that's because the price of the land has increased and along with that all the raw materials cost as well as the labour cost has been increasing.
And that's why the real estate price is going out of hand for many because of this price increase. And people usually go for the Home Loan way and the EMI eats up major of their income. I know delaying buying will again increase the cost of the house and that's why people are buying and getting into the EMI trap. And the problem is again the londlord in Bangalore.
The landlord asks for big advance and thus while leaving the house, they don't give the full advance back. Similarly they increase the rent at wish and because of these issues people tend to buy the house even though it is out of the budget. And since the real estate price is increasing rapidly, people want to buy as soon as possible to lock in the prices now.
People always think that the land prices increases rapidly but if you want to construct your house then that cost is also increasing yearly. And that's why people try to construct as soon as possible whenever they get the land.
