Recession 2023: Everything Real Estate Developers Must Know

2022 was a good year: the sales grew after the pandemic

• For example, Pune in CY2021    closed 37,218 units, and was         on its way to close high    numbers.

However, growing tension between two nations gave rise to inflation.

• Raw building materials saw a   hike of 20-30%

• Plenty of unsold inventory in the   nation which will take time

The situation created a supply  and demand gap keeping  developers and homebuyers on  the edge.

Current requirements of homebuyers:

• Most in demand – 2 BHKs, INR   45-60 Lacs with supply of 60-90   Lacs

• 3 BHK demand for 70-90 Lacs   with supply of 90-1.2 Cr*

What can developers do?

• Price property as per the   market

• There may be an increase in   demand for mid-segment at the   right price

• Saleable premium location    projects will thrive

• New launches will need to cater    homebuyers' needs