Small realtors caught in pincers as raw material cost rises: CRISIL

Realtors, particularly smaller ones, are caught in a pincer — with a sharp spurt in raw material cost (especially cement and steel) on the one hand, and subdued demand on the other.

Policy measures to incentivise first-time home buyers and encourage developers to make ticket sizes more affordable are yet to yield results — even as interest rates are headed north.

The upshot is an accentuated impact of rising raw material prices, which typically account for more than half of project construction cost (steel 32 per cent, cement/concrete 38 per cent).

CRISIL SME Ratings has assessed over 1,100 realtors.

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