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New Delhi: Around 58% of developers feel that housing prices are likely to rise in 2023 amid volatile input costs, economic uncertainties and sustained inflation rates, said a joint report by Colliers-CREDAI-Liases Foras.

“Raw material costs have surged significantly in the last two years due to global supply chain disruption, which has led to inflationary pressures," the report said.

The Real Estate Developers’ Sentiment Survey 2023 showed that 43% of developers saw a 10-20% rise in project costs in 2022 amid increasing input costs.

As many as 341 real estate developers from various parts of the country participated in the joint survey conducted during the last two months.

The survey report also observed that 43% of developers expect residential demand to remain stable in 2023, while 31% feel the demand would increase up to 25%.

“The previous year provided the much-needed impetus and led to record-breaking sales in the last decade. Hence, more than 70 percent of developers believe the demand for home ownership will either increase by 25 percent or remain stable in 2023. With such sentiment, most of the developers in the community (87%) are looking to expand their offerings and the year is likely to see a surge in new launches equal to the current supply under construction," said Harsh Vardhan Patodia, president of CREDAI National.

“Rising population, wealth growth, and rapid urbanisation are the key influencing factors driving the sector’s growth. Hence, to help maintain the momentum, almost 40 percent of developers anticipate improved ease of doing business from the government in 2023, while another 31 percent anticipate rationalization/income tax credit GST," he said.

“During 2022, developers across the spectrum saw increased enquiries led by a continued inclination towards home ownership since the pandemic. The survey reveals that developers remain optimistic about the market. About 43 percent of the developers feel that residential demand would remain stable in 2023. Developers too are focusing on launching projects that are aligned as per the needs of the homebuyers and are also formulating strategies to complete their pending projects and bring in demand-led supply," said Ramesh Nair, Chief Executive Officer, India and Managing Director, Market Development, Asia, Colliers.

“2022 witnessed the highest-ever sales and new launches across major cities in India. We have also seen a marginal increase in property prices. The market is likely to maintain the momentum that the sentiment survey re-affirms," said Pankaj Kapoor, managing director, Liases Foras.

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