Developers in trouble
About two decades ago most of the people were against living in apartments. They were in favour of buying a plot of land and then constructing a house when they could manage money for it. But the culture of buying and living in apartments reached the peak during the period 1995-2006. For meeting the demand, many developers came to the scene and started making buildings.
This business is not very easy. It is hardly possible to satisfy every buyer, as every buyer has different demands, choice, opinion & liking. Developers have to handle architects, engineers, government, non-government autonomous offices and even mastans.
Now I would like to mention an important aspect of this business. Like many other projects, developers have to make an 'estimate' for every project. They need two to three years' time for completing the project. Before starting the work, they calculate the cost of the project on the basis of present prices of materials and services. They add 5% to 10% excess costs to deal with fluctuation of prices. But from January 2007 the prices of materials relating to this business have been going up and up and God knows where the limits are.
The developers are facing a big problem. They cannot remain even at break-even point (BEP). Now the developers' estimates are going wrong.
Housing is a very basic requirement of people. The developers need a proper, disciplined and stable environment to render the service expected of them.
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