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Home Prices
Housing prices are likely to rise by an average 4-6 per cent in the medium term after recording a double-digit growth in the last two financial years, according to Crisil Ratings. "Residential real estate developers will see stable sales growth this fiscal and the next as demand steadies after three years of post-pandemic recovery. Demand or volume is seen rising 5-7 per cent and average prices 4-6 per cent," Crisil said in a statement. With supply expected to continue exceeding demand, inventory levels should inch up this and next fiscal, it added. However, the rating agency said that strong collections and deleveraged balance sheets of developers will keep their credit profiles healthy. Crisil has analysed 75 real estate companies, accounting for around 35 per cent of the residential sales in the country. During the three financial years, the rating agency said that sales in value terms clocked a compound annual growth rate (CAGR) of around 26 per cent, and demand (volumes) cloc
India's primary housing market may register a modest single-digit price rise in 2025 after appreciating by an average 21 per cent last year as developers are expected to boost new supply to match up demand, according to industry experts. Real estate developers and property consultants are expecting that the RBI will cut the repo rate this year, enabling banks to lower interest rates on home loans. They also hope for some fiscal incentives in the upcoming Budget to boost supply and demand for the affordable housing segment, which has lost sheen in the past few years. New home sales across seven major cities declined for the first time since the pandemic, as a sharp rise in housing prices and still elevated borrowing costs ruined the appetite of buyers in 2024. Sales volume declined 4 per cent during 2024 to 4,59,650 units across seven major cities, while new supply fell 7 per cent to 4,12,520 units, data from consultant Anarock showed. That was the first drop in sales after three .
New home sales in India declined for the first time since the pandemic, as a sharp rise in housing prices and elevated borrowing costs ruined buyers' appetite in 2024 and the real estate industry is now eyeing the upcoming Budget for favourable economic conditions -- a key to reviving demand conditions. The de-growth in the Indian housing market came after three straight years of stellar growth, following the COVID-era downturn, and was attributed in part to a high base in the previous year, a fall in supply of new homes and price appreciation. Anuj Puri, Chairman of Anarock, one of the leading housing brokerage firms in the country, termed the year 2024 as a "mixed bag" for the Indian residential market and noted that, while demand for the affordable housing segment was weak, sales and launches of luxury homes remained strong. India's residential real estate market, estimated to be valued at over USD 300 billion, faced a marginal 4 per cent drop in sales volumes during 2024, ...