80% developers expect increase in housing demand from NRIs in 2024: Report

Overall housing demand in country to increase by up to 25%, it says

As many as 80 per cent of developers expect non-resident Indians (NRIs) to buy more homes in the country in 2024 due to an “attractive investment landscape”, favourable regulations, and potential for gains, according to a survey released on Friday.

"To cater to this growing demand, developers are likely to launch upscale residential projects in relevant micro-markets across cities," said the CREDAI – Colliers Developer Sentiment Survey 2024. It analysed the responses of 553 developers in 18 states.

"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," 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," said Badal Yagnik, chief executive officer, Colliers.

As many as 27 per cent of respondents said that they believe housing demand will increase by up to 25 per cent in 2024. Alongside, 52 per cent of developers expect home prices to increase in 2024 due to demand.

To tackle this, 48 per cent of developers said that the new government must focus on decreasing interest rates on both home and construction loans and rationalise goods and services tax (GST).

New project launches have increased in the last two years due to high demand but are likely to slow down in 2024.

"Developers are likely to carefully monitor the market trends and be more strategic while launching new projects," said Yagnik.