The demand for housing in the Indian real estate market continues to be robust, showing no indications of a slowdown, according to CREDAI, the apex body for realtors. The association noted that while housing sales in any specific quarter may dip due to fewer launches, the consumer demand, which has surged following the COVID-19 pandemic, remains strong. Currently, CREDAI is hosting its flagship conference, ‘CREDAI NATCON,’ from September 23-26, with over 1,100 delegates in attendance.
When discussing the anticipated decline in sales for the current quarter, CREDAI National Chairman Manoj Gaur pointed out that new launches have decreased in the September quarter. He emphasized that there is a significant demand for residential properties from reputable developers in prime locations at attractive prices, stating, “There is no inventory.” This response came after PropEquity’s recent data indicated an 18% drop in sales across nine major cities, totaling 104,393 units in the July-September period.
Irfan Razack, CMD of Prestige Group and a former president of CREDAI, reiterated the strong demand, remarking that it is “evergreen” in the Indian housing market. He shared insights from his company, noting that while sale bookings for Prestige Estates Projects fell during the April-June quarter due to fewer launches, the need for streamlined approval processes for real estate projects is critical.
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Gaur mentioned that projects launched by established developers tend to sell out within days. Razack also expressed concern over the sharp rise in housing prices in certain micro-markets, advocating for more modest annual appreciation.
CREDAI National President Boman Irani highlighted the necessity for GST input credit provisions in the real estate sector and called for a revision of the definition of affordable housing, which has been capped at Rs 45 lakh since 2017. He pointed out that significant increases in real estate prices warrant an adjustment to this limit.
While acknowledging improvements in infrastructure across India, Irani stressed the need for further enhancements to meet global standards. Regarding the affordable housing segment, Razack suggested that the government should offer land at subsidized rates to facilitate the development of “mass housing.” He explained that rising land prices, along with increased construction and labor costs, pose challenges for real estate companies working on affordable housing projects.
CREDAI represents around 14,000 real estate developers from across India, reflecting a diverse and dynamic sector.
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