A significant percentage of real estate developers expect property prices to rise of up to 30 per cent this year due to sharp increase in rates of building materials, according to a survey conducted by realtors body CREDAI.
The Confederation of Real Estate Developers Associations of India (CREDAI) conducted the ‘Real Estate Developers Sentiment Survey 2022’ during December 30 to January 11, 2022. As many as 1,322 developer members participated in the survey.
Around 60 per cent developers foresee a price rise up to 20 per cent in 2022, due to increase in prices of building material, the report said.
As per the survey findings, nearly 35 per cent of respondents expect prices to rise by 10-20 per cent, while 25 per cent of builders see up to 10 per cent hike in rates.
Another 21 per cent respondents expect property prices to rise in the range of 20 per cent to 30 per cent.
“With the onset of the new third wave, we are expecting the government to look at additional measures for preparedness and controlling any further impact of COVID-19,” CREDAI-National President Harsh Vardhan Patodia, said.
Most of the developers are focusing on digital transformation which has led to an increase in online sales, he said, adding “around 39 per cent of the developers are doing 25 per cent sales online which we think will increase substantially this year.”
The report underlines top concerns of the developer community including controlling the input cost, introducing credit input on GST, increasing availability for funding, streamlining and faster approvals for projects.
Among other major trends, the survey found out that 92 per cent of respondents are planning new launches in 2022.
As many as 74 per cent developers surveyed want “Ease of Doing Business”, 55 per cent developers will adopt virtual reality in their business in 2022.
Online sales contributes up to 25 per cent to business of 39 per cent respondents. Around 65 per cent developers are willing to explore new business models in 2022 like co-working, co-living, the survey report said.
Around 96 per cent of the developers would prefer to launch residential real estate in 2022.
The Confederation of Real Estate Developers Associations of India (CREDAI) is the apex body of private Real Estate developers in India. Established in 1999, CREDAI represents 13000+ Developers across 221 city chapters in 21 states.