As many as 92 per cent of real estate developers are planning new launches in 2022, 65% are willing to explore new business model this year such as co-working and co-living and as many as 60 per cent developers foresee a price rise up to 20 per cent this year following increase in prices of raw materials, a recent report has said.
According to a survey titled Annual Real Estate Developers Sentiment Survey 2022 by the Confederation of Real Estate Developers Associations of India (Credai), nearly 35 per cent of respondents expect prices to rise by 10-20 per cent, while 25 per cent of builders see up to 10 per cent hike in rates. Another 21 per cent respondents expect property prices to rise in the range of 20 per cent to 30 per cent.
As many as 74 per cent developers surveyed want Ease of Doing Business, 55 per cent developers are expected to adopt virtual reality in their business in 2022.
The survey was conducted among developers from 21 states including 8 tier-1 cities in India namely Delhi, Ahmedabad, Bengaluru Chennai, Hyderabad, Kolkata, MMR and Pune.
"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," said Harsh Vardhan Patodia, CREDAI-National president.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
Most of the developers are focusing on digital transformation which has led to an increase in online sales, he said, adding "around 39 per cent of the developers are doing 25 per cent sales online which we think will increase substantially this year,” he said.
The report underlines top concerns of the developer community including controlling input costs, 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, Patodia said.
“Most of the developers are focusing on digital transformation which has led to an 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.