Housing sales appear to be subdued on account of fewer new launches but consumer demand remains intact: Credai

Housing sales may appear to be subdued because new launches have been few and far between. Besides, demand for housing continues to remain robust with no signs of a slowdown. New project launches are all ‘sold out’ and there is no inventory, real estate developers said at the CREDAI NATCON event being held in Sydney on September 23.

CREDAI’s flagship conference 'CREDAI NATCON' is being held in Sydney this week. It is being attended by more than 1,100 delegates.

When asked about estimated reduction in sales during the current quarter, CREDAI National Chairman Manoj Gaur said the new launches have been few and far between in the September quarter. “There is no inventory. There is a huge demand for residential properties from good developers at right locations and at the right prices," Gaur told reporters in Sydney.

“After RERA it has become difficult to launch several projects at the same time. More than a year is required to get all the clearances. Availability of land at a good location and with a clear title is scarce. Having said that, if a developer launches a new project at a good location the entire project gets sold out. This means that while the number of new project launches have been reduced, demand has remained intact,” he said.

Agreed Irfan Razack, chairman and managing director, Prestige Group and former president of CREDAI. “Demand is evergreen as long as the new project is launched at the right price and at the right location. What is not there is the inventory.”

In its latest data, PropEquity had estimated that sales across nine major cities had fallen by 18% across nine major cities to touch 1,04,393 units during July-September period.

Citing the example of his company, Razack said the sale bookings of Prestige Estates Projects fell in April-June quarter due to lesser number of launches. He also said that the process of granting approvals needs to be fastened.

Commenting on affordable housing, Razack said that the government should provide land at subsidised rates to promote affordable housing.

CREDAI National President Boman Irani said that there was a need to include the provision of GST input credit in the real estate sector. He also said that the definition of affordable housing, capped at ₹45 lakh in 2017 should be replaced.

Also Read: India's real estate market likely to touch $10 trillion by 2047: Colliers-CREDAI Report

K Sriram, co-chair, NATCON Committee pointed out that only 5% of real estate developers were contributing to organized housing stock, the remaining 95% were from the unorganized or self developed sector.

Irani noted that there has been a lot of improvement in the infrastructure in India but said there is a need for further improvement to reach global standards.

"Land prices have gone up sharply. Construction cost is under our control. Labour rates too have risen," Razack said, while explaining the difficulties faced by realty firms in the development of affordable housing projects.

Learnings from NATCON

Asked to comment on learnings from NATCON events held in other cities over the years, Gaur said that the theme of the 23rd NATCON event is Elevate, Innovate and Inspire the industry. Credai will be celebrating its 25th anniversary this year.

“Our commitment to affordable housing, green building practices, and smart city initiatives continues to drive us forward, and we are excited to share these experiences and learn from our global counterparts. Today, as we gather here in Australia, we are reminded of the power of global collaboration,” he said.

Also Read: Luxury housing trends: Why are real estate developers launching ₹5 crore-plus apartments in Noida?

NATCON 24 provides us with an exceptional opportunity to engage with  leaders, innovators, and stakeholders from around the world. “Our discussions over the next few days will center around critical themes such as sustainable development, technological advancements, urbanization, and the future of housing. These topics are not confined by borders—they are universal challenges that require innovative solutions and cooperative efforts,” he said, adding Indian cities have a lot to learn from Sydney which is a ‘20-minute city.”

Also Read: Real estate sector expected to touch a market size of $1.3 trillion by FY2034: Credai

Irani said that Indian cities can draw several lessons from Sydney in terms of infrastructure development, luxury housing developments in and around the harbour area and rental housing. 

Confederation of Real Estate Developers' Associations of India (CREDAI) has around 14,000 real estate developers as members.