92% Real Estate Developers Planning New Launches in 2022 if Ease of Doing Business Improves: Report

As many as 60 per cent developers foresee a price rise up to 20 per cent this year following increase in prices of raw materials

As many as 92 per cent of real estate developers are planning new launches in 2022, 65% are willing to explore new business model this year such as co-working and co-living and as many as 60 per cent developers foresee a price rise up to 20 per cent this year following increase in prices of raw materials, a recent report has said.

According to a survey titled Annual Real Estate Developers Sentiment Survey 2022 by the Confederation of Real Estate Developers Associations of India (Credai), 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.

As many as 74 per cent developers surveyed want Ease of Doing Business, 55 per cent developers are expected to adopt virtual reality in their business in 2022.

The survey was conducted among developers from 21 states including 8 tier-1 cities in India namely Delhi, Ahmedabad, Bengaluru Chennai, Hyderabad, Kolkata, MMR and Pune.

"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," said Harsh Vardhan Patodia, CREDAI-National president.

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,” he said.

The report underlines top concerns of the developer community including controlling input costs, introducing credit input on GST, increasing availability for funding, streamlining and faster approvals for projects which require urgent interventions to keep up the upbeat sentiment and encourage them to invest more in business, Patodia said.

“Most of the developers are focusing on digital transformation which has led to an increase in online sales for at least 55% of them and are adopting new technologies like VR. Interestingly, 39% of the developers are doing 25% sales online which we think will increase substantially this year,” he added.

Credai is the apex body of private real estate developers in India. It represents more than 13000 developers across 221 city chapters in 21 states.

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Source: www.moneycontrol.com