As per the survey realty developers expecting 30% rise in real estate prices this year

According to a survey conducted by realtors body CREDAI, a significant percentage of real estate developers expect property prices to rise of up to 30% this year due to sharp increase in rates of building materials.

The Confederation of Real Estate Developers Associations of India (CREDAI) conducted the ‘Real Estate Developers Sentiment Survey 2022′ during December 30, 21 to January 11, 2022. As many as 1,322 developer members participated in the survey.

As per the reports around 60% developers foresee a price rise up to 20 per cent in 2022, due to increase in prices of building material.

As per the survey findings, nearly 35% of respondents expect prices to rise by 10-20%, while 25% of builders see up to 10% hike in rates.

Another 21% respondents expect property prices to rise in the range of 20% to 30%.

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.”

Most of the developers are focusing on digital transformation which has led to an increase in online sales, he said, adding “around 39% of the developers are doing 25% 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% of respondents are planning new launches in 2022.

As many as 74% developers surveyed want “Ease of Doing Business”, 55% developers will adopt virtual reality in their business in 2022.

Online sales contributes up to 25% to business of 39% respondents. Around 65% developers are willing to explore new business models in 2022 like co-working, co-living, the survey report said.

Around 96% 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.