Housing prices, demand expected to rise in 2023: CREDAI-Colliers survey

New Delhi On an average, 58 out of 100 developers in the country believe that housing prices in the country will increase further in 2023, according to a latest survey by real estate firms’ forum CREDAI and consulting firm Colliers and Liaisons Forum. This increase in prices is due to strong demand for homes in the market and fluctuating factor costs.

The “Real Estate Developers’ Sentiment Survey – 2023” released on Monday said 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 developer companies said project cost saw an increase of 10-20 per cent in 2022 due to rising input costs. According to the report, the cost of major construction materials has gone up by about 32 per cent in a span of three years.

Harsh Vardhan Patodia, President, CREDAI National said, “The last year saw a very strong momentum, which led to record breaking sales in the last decade. Therefore, more than 70 per cent developers believe that the demand for home ownership will either increase by 25 per cent or remain stagnant in 2023.” It added that 87 per cent developers are looking to expand the housing offering, with more number of new projects expected to be launched during the year.

In the report, 40 percent developers said that ease of doing business can be increased by the government in 2023. Another 31 per cent is expected to rationalize the provisions of Income Tax and GST. Ramesh Nair, MD & CEO, Colliers India, said, “During 2022, all developer companies saw an increase in inquiries for homes due to the continued inclination towards home ownership post the pandemic. The survey shows that real estate developers remain optimistic about the market. ,