The NAREDCO chairman, however, said India’s strong growth outlook, sustained urbanisation, rising aspirations, and continued demand for branded, quality housing provide a solid foundation for the sector.
NAREDCO President Praveen Jain said the impact of the interest rate hike on the residential market is expected to remain limited, supported by strong buyer sentiment, festive demand, and the long-term desire for homeownership.
Praveen Jain, President, NAREDCO, said, “The festive season is a very important period for the real estate sector, and stability in interest rates during this period remains positive for homebuyers. However, it is also important to control inflationary pressures and maintain stability in the economy. In this context, the 25 bps increase in the repo rate should be viewed in the context of the broader economic conditions. Housing demand remains strong at present.
National Real Estate Development Council (NAREDCO) president Parveen Jain said, "The increase in the repo rate should be viewed in the context of the broader economic conditions. We expect the impact of this increase on the residential market to remain limited."
प्रवीन जैन (अध्यक्ष, नारेडको): महंगाई नियंत्रण के लिए 25 bps बढ़ोतरी जरूरी थी. मजबूत त्योहारी मांग से आवासीय बाजार पर असर सीमित रहेगा. ऐसे में रेपो दर में 25 बेसिस पॉइंट की बढ़ोतरी को व्यापक आर्थिक परिस्थितियों के संदर्भ में देखा जाना चाहिए. फिलहाल आवासीय मांग मजबूत बनी हुई है.
The GCC effect extends beyond offices, generating demand for housing, hotels, retail, transport and social infrastructure. Parveen Jain, president, NAREDCO, believes that GCC expansion can drive long-term commercial demand and urban growth, while helping emerging cities build stronger business ecosystems.
CHENNAI: The construction cost in the real estate sector has inflated by 25% since the West Asia war began in February, said NAREDCO president Parveen Jain.
Speaking with TNIE, Jain said, “The input cost of construction has been up by 25% as all raw material prices have increased in the last six months. Copper has seen a price increase of 60% in the past six months. Even if the US-Iran war stops, it will still take another three months for supplies to normalise.”
India’s student housing is grappling to keep up with demand, even as organised private developers stay away from the segment citing weak project economics, high land cost and regulatory uncertainty.
Industry estimates show that only 7.5 million on-campus beds were available in the country against over 43.3 million students enrolled in higher education during 2021-22. This highlights a significant accommodation gap.
Subsidies Face Affordability Limits
Niti Aayog says 85 per cent of households in metropolitan areas cannot afford a 30 sq m home even after subsidy, highlighting the gap between household purchasing capacity and formal housing prices. The report also notes that a large proportion of EWS and LIG households lack stable incomes or formal credit histories, making access to housing finance difficult.
Minister of Housing & Urban Affairs has approved the Delhi Master Plan 2047 paving way for the planned real estate development in the capital.
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