Realty Developers Expect 30% Hike in Real Estate Prices in 2022
Acc to CREDAI, real estate developers anticipate property prices to increase by 30 percent this year due to increased building material rates.
The Confederation of Real Estate Developers Associations of India (CREDAI) has recently conducted the ‘Real Estate Developers Sentiment Survey 2022’, which stated that 1,322 developer members participated in the survey. From this survey,
Approximately 60% developers expect a price hike of 20 percent in 2022, owing to an increase in building material prices, the report stated.
If we look at the survey findings, then around 35 percent of respondents anticipate prices to go up by 10-20 percent, while 25 percent of builders expect a 10 percent hike in rates. While another 21 percent of the respondents expect property prices to stay in the range of 20 percent to 30 per cent.
CREDAI-National President Harsh Vardhan Patodia said, “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,”.
Developers focus on digital transformation which has led to a rise in online sales; he said while adding, “around 39 percent of the developers are doing 25 percent sales online, which we think will increase substantially this year.”
The report focuses on the prominent concerns of the developer community, which include controlling the input cost, launching credit input on GST, raising availability for funding, streamlining and faster approvals for projects.
Among other major trends, the survey witnessed 92 percent of respondents planning new launches in 2022. Around 74 per cent developers surveyed expect “Ease of Doing Business”, 55 percent of developers are planning to adopt virtual reality in their business in 2022.
Online sales share is up to 25 percent to 39 percent of respondents. As near as 65 percent of developers plan to explore new business models in 2022, such as co-working co-living, the report stated.
The highest number, 96 percent of the developers, prefer launching residential real estate in 2022.
The Confederation of Real Estate Developers Associations of India (CREDAI) was established in 1999, which is the apex body of private Real Estate developers in India. The body has approximately 13000+ developers sprawled over 221 city chapters in 21 states.