Ind-Ra maintains neutral outlook for Indian residential real estate sector for FY25
India Ratings and Research (Ind-Ra) has maintained a neutral outlook for the Indian residential real estate sector for the financial year 2024-25 (FY25). It said absorption in residential real estate and prices are likely to be supported by affordability and stability of interest rates. However, given the high base of the just-concluded financial year 2023-24, the growth rates are likely to taper down.
The residential real estate market registered a strong performance in the first three quarters of 2023-24 where the sales growth exceeded 25 per cent year-on-year for the top eight real estate clusters, despite price increases and sticky interest rates. With most regions witnessing a surge in prices, it expects the pre-sales growth to moderate to 8 per cent to 10 per cent year-on-year in the current financial year.
Further, it expects the prices to have been higher 22 per cent year-on-year at end-2023-24 and would be subdued at around 5 per cent for 2024-25, due to the base effect and large amount of new launches planned. Moreover, it expects the mid-income and upper mid-income segments, which emerged as the leading consumer segments in 2023-24, to continue to witness a strong buyer interest.
