Karnataka's housing market is under severe strain as rising construction costs and an imbalance between supply and demand push prices to new heights. The affordability crisis is becoming increasingly evident, with many potential buyers being priced out of the market. In urban centers like Bengaluru, the average price per square foot has surged, making homeownership a distant dream for many. This situation is compounded by a lack of adequate housing policies that could mitigate these escalating costs.
The state government's recent initiatives aimed at enhancing housing availability are yet to yield tangible results. While the Karnataka government has announced plans to streamline approvals for housing projects, the implementation remains sluggish. Consequently, developers are hesitant to invest in new projects, fearing that rising costs will erode their margins. This hesitance only exacerbates the existing supply crunch, further inflating prices.
Moreover, the impact of inflation on construction materials has been significant. Reports suggest that the cost of essential materials has risen by as much as 30% in the past year alone. This increase not only affects new projects but also leads to higher costs for ongoing constructions, ultimately being passed on to consumers.
