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Maintaining the sector outlook as improving for FY23 as well, Credit rating agency, India Ratings and Research (Ind-Ra) in its latest report on ‘India’s residential real estate sector’ has said that the housing market growth momentum is likely to continue on the back of a strong demand in FY23.

The rating agency further noted that Grade I players are likely to generate strong sales in FY23 due to the ongoing consolidation in the market. According to the report, there has been formalisation of the sector with Grade I and strong local players gaining market share and brands winning the customer preference, as home buyers remain wary of under-construction projects by Grade II developers.

Ind-Ra also said that the formalisation of the sector is driving fringe players to partner with Grade I developers for project execution and sales as they command the market. The agency further added that Grade I players are expected to register double-digit sales growth of around 15% yoy in FY23.