If the builders are reaping benefits from lower prices in steel and cement, why don't they pass on these benefits to the consumers?
Answered on November 08, 2017
Price of any commodity depends upon supply and demand. When prices of steel and cement are lower it implies that there is no sustainable demand from the real estate as well as infrastructure. As such combined cost of cement and steel forms a very small percentage of price of a real estate in mumbai so even the substantial decrease in rates of these commodities will not have any measurable impact on the price of a real estate even in a distant suburb of mumbai.
