80% Of Developers Foresee Rising NRI Home Purchases In 2024: Survey

Approximately 27 per cent of survey respondents expressed optimism about a potential increase in housing demand by up to 25 per cent in 2024

80 per cent of developers anticipate that non-resident Indians (NRIs) will increase their home purchases in 2024, driven by an appealing investment environment, favourable regulations, and profit potential, according to the CREDAI – Colliers Developer Sentiment Survey 2024 released on Friday.

"To cater to this growing demand, developers are likely to launch upscale residential projects in relevant micro-markets across cities," it said.

Approximately 27 per cent of survey respondents expressed optimism about a potential increase in housing demand by up to 25 per cent in 2024. Additionally, 52 per cent of developers foresee an uptick in home prices this year due to heightened demand.

In response to these expectations, 48 per cent of developers emphasised the need for the new government to prioritise reducing interest rates on home and construction loans and rationalising the goods and services tax (GST).

"The survey suggests that the current developer sentiment remains largely positive, with more than half of the respondents feeling bullish about the sustenance of the current market dynamics in 2024. However, tackling rising construction costs and rationalising taxes remain key expectations from the new Government, with more than 50 per cent of Developers seeking constructive solutions for the same," said Boman Irani, president of CREDAI.

"With over 50 per cent of surveyed developers witnessing a rise in homebuyer enquiries, residential real estate has been on an upswing throughout 2023. This strong streak is expected to continue in 2024," added Badal Yagnik, chief executive officer of Colliers.

While new project launches have surged over the past two years, driven by robust demand, they are expected to moderate in 2024.

“Going ahead, developers anticipate a rise in housing prices, which reflects their confidence in the residential market. With significant new launches over the last two years, unsold inventory levels have expanded; thus, launches are expected to moderate in the near-midterm. Developers are likely to carefully monitor the market trends and be more strategic while launching new projects,” added Yagnik.