A latest study from CREDAI reveals a positive sentiment amongst real-estate developers in the New Year if the upcoming Union Budget 2022 facilitates ease of doing business. The survey titled ‘Annual Real Estate Developers Sentiment Survey 2022’, showcases an active participation from 1322 developers of CREDAI National on several parameters like 2022 plans for new project launches, focus on technology adoption, contribution of online sales, new asset classes, expectations from Government, technology adoption etc. The survey was conducted amongst developers from 21 states including 8 tier-1 cities in India namely Delhi, Ahmedabad, Bengaluru Chennai, Hyderabad, Kolkata, MMR and Pune.
Commenting on the launch of the report, Harsh Vardhan Patodia, President, CREDAI National, 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. 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 which require urgent interventions to keep up the upbeat sentiment and encourage them to invest more in business.”
“Most of the developers are focusing on digital transformation which has led to 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.
Major trends from the report:
· 74% Developers’ “New Year Wish” is “Ease of Doing Business”
· 55% Developers would be adopting Virtual Reality in their business in 2022
· Online Sales contributing up to 25% to Business of 39% Developers
· 65% Developers are willing to explore new business model in 2022 like Co-Working, Co-Living
· 96% of the Developers would prefer to launch Residential Real Estate in 2022
· 45% of the Developers would prefer to launch Non-Residential Real Estate in 2022
· 60% Developers foresee a price rise to 20% in 2022 due to increase in prices of building materials