The rise in input costs and several other factors may see an increase in housing prices this year. A recent survey has stated that this is what has been felt by 58 per cent of developers, while 32 per cent builders feel it will remain stable.
According to the ‘Real Estate Developers Sentiment Survey’, by Realtors apex body CREDAI, real estate consultant Colliers India and property research firm Liases Foras, 43 per cent of developers expect residential demand to remain stable in 2023, while 31 per cent feel the demand would increase up to 25 per cent.
As per the survey, as many as 341 real estate developers from various parts of the country participated in the joint survey conducted during the last two months. “An overwhelming 58 per cent of the developers feel that housing prices are likely to rise in 2023 amidst volatile input costs, economic uncertainties and sustained inflation rates,” the report mentioned.
The survey further revealed that about 32 per cent of the developers believe that the prices will remain stable in 2023. It may be recalled that housing prices have been on the rise over the last few quarters, with factors like robust housing demand as well as rise in input costs pushing it, the report stated.
The survey report also showed that 43 per cent of developers saw a 10-20 per cent rise in project costs in 2022 amidst rising input costs. As per the survey, the developers want ‘ease of doing business’ from the government.
The survey findings showed that almost half (46 per cent) of the developers believe that a probable recession will have a moderate impact on their business. As much as 31 per cent expect minor impact, while 15 per cent believe severe affect. More than 70 per cent of the respondents believe the demand for home ownership to either increase or remain stable in 2023.