Optimistic Real Estate Developers Expect Housing Demand to Soar in 2024
Real estate developers are confident about housing demand in 2024, with over 50% seeing a rise in buyer inquiries in 2023.
Real EstateHousing DemandCredaiColliersTax CutsInterest RatesNri DemandReal EstateJul 05, 2024
The survey, which covered over 550 respondents from 18 states across India, found that 53% of developers saw a rise in buyer enquiries and engagement in 2023 compared to 2022. About half of the surveyed developers feel that residential demand will remain stable in 2024, with nearly two-thirds willing to explore alternate segments like plotted developments, branded residences, etc.
Developers are confident that the demand momentum will continue in 2024, driven by factors such as stable interest rates, continued inclination for home ownership, and positive market sentiment. The survey also found that 45% of developers saw a 10-20% rise in construction costs in 2023 amidst rising input costs.
Boman Irani, President CREDAI, emphasized the importance of tackling rising construction costs and rationalizing taxes to sustain the current market dynamics in 2024. Badal Yagnik, CEO of Colliers India, noted that developers anticipate a rise in housing prices, reflecting their confidence in the residential market.
The survey also highlighted evolving trends in the real estate sector, including a growing demand for plotted developments, branded residences, and senior living spaces. About 66% of developers want to explore alternate business segments, while 30% are willing to diversify into other asset classes, including developments like warehousing/logistics parks and data centres.
Furthermore, the survey found that over 80% of developers are confident of increased housing demand from NRIs during 2024, led by the country's attractive investment landscape and potential for investment gains.
As the Budget approaches, developers continue to pitch for tax rationalisation, sops for affordable housing, and single-window clearances to ease business and help more people buy their dream houses. GST-related input tax concession and interest rate reduction could provide financial elbowroom to developers and improve the financial viability of projects.
Frequently Asked Questions
What is the current sentiment of real estate developers in India?
Real estate developers are optimistic about housing demand in 2024, with over 50% seeing a rise in buyer inquiries in 2023.
What are the key factors driving demand in the housing sector?
Stable interest rates, continued inclination for home ownership, and positive market sentiment are expected to drive demand in the housing sector in 2024.
What are the evolving trends in the real estate sector?
Growing demand for plotted developments, branded residences, and senior living spaces are some of the evolving trends in the real estate sector.
What is the expected demand from NRIs in 2024?
Over 80% of developers are confident of increased housing demand from NRIs during 2024, led by the country's attractive investment landscape and potential for investment gains.
What are the key demands of real estate developers from the government?
Real estate developers are seeking tax rationalisation, sops for affordable housing, and single-window clearances to ease business and help more people buy their dream houses.
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