The housing market in India is poised for a continued upswing in 2024, according to the latest Credai – Colliers Developer Sentiment Survey 2024. Conducted from April to May 2024, the survey reveals that more than half of the developers anticipate a stable to positive residential market in the coming year, despite rising construction costs and evolving market dynamics.
Key findings from the survey show that 53 per cent of developers reported a rise in buyer enquiries and engagement in 2023 compared to the previous year. 45 per cent of developers faced a 10-20 per cent increase in construction costs due to higher input expenses, but 52 per cent expect housing prices to continue rising in 2024. Half of the respondents foresee stable residential demand, while 27 per cent believe it will increase by up to 25 per cent.
Boman Irani, President of Credai, emphasised the importance of the real estate sector in India’s economic growth. “India's ambition to become a USD 7 trillion economy by 2030 is driven by the transformative power of infrastructure and real estate,” he stated. “Our survey reflects a positive outlook among developers for 2024, with a strong call for tax rationalisation and lower interest rates to sustain market growth and address rising construction costs.”
The survey also highlights a shift towards new business models, with 66 per cent of developers interested in exploring alternative segments like plotted developments and branded residences. There is also a significant expectation for increased demand from NRIs, with over 80 per cent of developers confident about this trend.
Badal Yagnik, CEO of Colliers India, noted that the momentum from 2023 is expected to carry into 2024. “With stable interest rates and a continued inclination towards home ownership, the residential real estate market is set to remain robust. However, developers will need to adapt to evolving market trends and manage unsold inventory carefully.”
Looking ahead, developers are urging the new government to implement measures such as tax rationalisation, sops for affordable housing, and single-window clearances in the upcoming Budget 2024. Additionally, 30 per cent of developers seek improvements in the Ease of Doing Business to support a more conducive investment environment.
The Credai – Colliers Developer Sentiment Survey 2024 provides a comprehensive overview of the residential real estate sector’s performance and future prospects, based on responses from over 550 developers across 18 states.
