edited by: Mohammad Haris
Last Update: January 16, 2023, 4:50 PM IST
Around 43 per cent developers see project cost increasing by 10-20 per cent in 2022 as compared to 2021 amid rising input costs.
Around 43 per cent developers believe that residential demand will remain stagnant in 2023, followed by 31 per cent who believe demand will increase by 25 per cent
About 58 percent of the developers surveyed India Housing prices are expected to increase further in 2023. According to a joint survey report by Colliers-Credai-Liaises, the rise in prices is likely to be driven by strong demand for homes in the Indian market as well as, volatile key input costs. for as.
“Raw material costs have increased significantly over the past two years due to global supply chain disruptions, adding to inflationary pressures. Around 43 per cent developers see project cost increasing by 10-20 per cent in 2022 as compared to 2021 amid rising input costs. This is in line with Colliers’ Construction Cost Update: November 2022, which states that the cost of key construction materials has increased by around 32 per cent over the three-year period. This has increased the cost of construction for developers,” according to the Real Estate Developers’ Sentiment Survey 2023.
Around 62 per cent developers feel that inquiries and engagement from buyers have increased in 2022 as compared to 2021. Around 43 per cent developers believe that residential demand will remain stable in 2023, followed by 31 per cent who feel demand will increase. up to 25 percent.
Around 43 per cent developers see a 10-20 per cent increase in project cost in 2022 amid rising input costs. 31 per cent developers are willing to explore plotted development as an alternative business model, followed by branded housing preferred by 19 per cent developers.
Around 39 per cent developers also expect better ease of doing business from the government in 2023 and another 31 per cent expect GST rationalisation/income tax credit. Nearly half the developers believe that a possible recession will have a moderate impact on their business.
Harshvardhan Patodia, President, CREDAI National, said, “The last year provided the much-needed impetus and led to record-breaking sales in the last decade. Hence, more than 70 per cent developers believe that the demand for home ownership in 2023 or So 25 per cent will increase or remain stagnant. With such a sentiment, most developers in the community (87 per cent) are looking to expand their offerings. And this year is likely to see a spurt in new launches equal to the current supply under construction. “
He said that increasing population, wealth growth, and rapid urbanization are the major factors influencing the growth of the region. Hence, to help maintain the momentum, around 40 per cent developers anticipate ease of doing business from the government in 2023, while another 31 per cent anticipate GST rationalisation/income tax credit.
Ramesh Nair, Chief Executive Officer (India) and Managing Director, Market Development, Asia, Colliers said, “During 2022, developers across the spectrum saw a rise in inquiries owing to the continued inclination towards home ownership since the pandemic. The survey reveals that developers remain optimistic about the market. Around 43 per cent developers believe that residential demand will remain stable in 2023. Homebuyers are excited to buy homes despite rising interest rates.”
He added that developers are also focusing on launching projects that suit the needs of homebuyers and are formulating strategies to complete their pending projects and bring in demand-based supply.
Pankaj Kapur, Managing Director, Liases Foras said, “2022 saw the highest number of sales and new launches across major cities in India. We have also seen a marginal increase in property prices. The sentiment survey reaffirms that market momentum is likely to sustain.”
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