Homebuyers are interested in buying today, but are choosing to wait in the hope that a price correction will happen in the coming months. Is that expectation realistic?
In this conversation, Sanjay Kumar Bansal (Managing Director, DEV Developers) joins Devansh Bansal to discuss construction costs, market pricing, and whether waiting for a correction could actually work against end users.
A few key moments that set the tone for the conversation:
• Why rising land prices and construction input costs could influence future pricing across the market
• How supply chain costs, vendor pricing, and project economics affect developers’ pricing decisions
• Why a project that is already substantially completed may offer a different risk profile than one still in the early stages of construction
Watch the full interview to hear Sanjay Kumar Bansal’s perspective on market timing, construction economics, and the factors buyers should consider before delaying a purchase decision.
Devansh Bansal:
Sir, we have prospects who are sitting and waiting.
You won’t believe the number of site visits we are getting right now. Extremely good, extremely high.
We are all quite optimistic about the next few quarters, but conversions have been quite slow—not because people don’t want to buy, but because they want to wait.
They believe prices will come down and they will get a better deal if they wait a little longer.
I have also seen news reports from CREDAI saying nationally that developers cannot continue holding on to current pricing forever.
What are your thoughts? Is the correction these prospects are waiting for actually going to come?
Sanjay Bansal:
Very good question.
If you look at land prices, they are already skyrocketing in any location for that matter.
The inventory is higher, which is why built-up area prices have not increased proportionately. But because of land prices and inflationary pressure, if you ask anybody in the industry—or even ask AI—we are at a minimum of 20% higher costs if we were to start a new project today.
So sooner or later, every developer has to increase prices.
It could happen after 30 days. It could happen after 3 months.
How long they can hold depends on their absorption capacity and how much inventory they want to liquidate to maintain liquidity.
After that, the industry has to move on and increase prices.
The clients who actually need a home should understand this.
If you look at the customer profile of DEV Signature One, I’m sure 75% to 80% are end users.
They should understand that if they have to buy, they should not miss the bus.
I’ll give you an example from another industry.
I used to call us Mercedes.
Then I realized, no, we are not Mercedes—we are BYD.
We are real value for money.
That is what the DEV brand stands for.
When you know for sure—and AI will tell you this as well—that within a maximum of 3 months everyone has to increase prices by a minimum of 10%, there is no second thought in that.
Petrol and diesel prices in India have increased only around 10%.
Worldwide, the average increase has been around 40%, even in developed nations.
We are a developing nation.
Given all the national circumstances and international scenarios, which are beyond anybody’s control, I feel the end user should take a wise decision wherever they want to buy.
It is better to buy than to remain on hold.
Devansh Bansal:
I completely agree with you.
But what makes you say that developers have to increase prices by 10%?
I know we were discussing increasing input costs earlier. Could you throw some more light on that?
Sanjay Bansal:
As I said, input costs have increased across the board.
Tiles have increased by 20% across the industry, and that too with advance payment requirements.
Advance payment means my cash flow starts getting utilized immediately, so my financial costs are also added.
Apart from supply chain costs, all branded products are affected.
Take paints as an example. Many of their raw materials are linked to petroleum products.
Even though we are using Birla Opus, the second biggest company in the country after Asian Paints, they also had to increase prices.
We use Aerocon, another Birla Group company and the number one AAC block brand. We have been using them since 1998.
I am one of their biggest relationship customers.
They also had to increase prices because this is a supply-chain effect.
Every vendor has to increase prices because their vendors are increasing prices.
And I am a vendor to my customer.
So ultimately, sooner or later, I have to increase prices.
When I say “I”, I mean every developer has to increase prices.
Devansh Bansal:
I understand.
I also understand that steel prices have definitely moved over the last quarter.
We were lucky enough to have used most of our steel already.
But how will it affect developers who are still under construction and using a lot of steel in their projects?
I’m using steel only as an example. It could be cement, steel, or any other material.
Sanjay Bansal:
Steel is a different kind of commodity.
I would actually say its price has gone down, not up.
In the last 30 days, we placed a purchase order for 125 tons at ₹52,000.
Before even 25% of the delivery was completed, the price had come down to ₹47,000.
Because of inflationary pressures, a lot of Central Government projects are on hold.
A lot of State Government projects are on hold.
A lot of developers are under stress.
So demand has reduced for that particular commodity.
That’s where I was referring to RBI interest rates.
During COVID, the situation was simple. Interest rates had to be reduced to inject liquidity into the market as a stimulus package so that growth could continue.
That is what is required in industries associated with products like steel.
Where demand has reduced, prices are reducing.
On the other hand, there is inflationary pressure on other parts of my supply chain, like I mentioned earlier—tiles, paints, Aerocon blocks.
So it’s a mixed situation.
If you read RBI’s statement from yesterday, they are also unable to decisively move one way or the other, which is why they have kept things status quo.
That’s where I hear Modi ji’s messaging.
He cannot say everything directly to all of us, but my interpretation is: be cautious, brace for impact.
That’s what I understand.
Devansh Bansal:
Understood.
So what you’re also trying to say is that the right time to buy is now.
Prices are more likely to go up than go down anytime soon.
Sanjay Bansal:
This is not your choice alone.
Especially when you make a wise decision by selecting a project that is already 70% complete.
If I were only at a 10% construction stage, then yes, it would be a different discussion.
But when you are looking at a project that is already 70% complete, you are much safer.
I show everybody that I still have unutilized cash flow available, and now I am using it to complete the project on time so that all my customers get their keys as promised.
Devansh Bansal:
So we are also zero debt. Good to know.
