Developers inGujarathave seen inquiries increase in 2022 and believe the trend will continue in 2023 as well. According to a CREDAI report, 62% of developers in the state have seen an increase in demand and 43% believe housing demand will remain stable in 2023, while 29% said demand will grow by up to 25% in 2023.
According to the Developer Sentiment Survey conducted by CREDAI and Colliers and Liases Foras, in Gujarat, 10% of developers believe demand will increase by 25% to 50% while 19% believe there will be a slowdown in 2023.
The study said 2023 is likely to see a spurt in new launches, equivalent to current supply under construction as about 87% of developers are willing to launch new residential projects in 2023. This indicates increased optimism among developers despite inflationary pressures and a potential impending .
About 33% of developers of Gujarat said higher construction costs have pushed up project costs by 5% to 10% while 38% said project costs have increased by up to 20% and 29% said the increase was more than 20%.
The majority of states witnessed increases in project costs. More than 70% of developers in Delhi, UP,Telangana, Andhra Pradesh andTamil Naduwitnessed a more than 10% increase in project costs.
While the majority of the developers who witnessed an increase up to 10% were from Gujarat, Rajasthan, Karnataka, Kerala and West Bengal, the report said.