Housing sales across India’s top 7 cities expected to witness double digit growth in FY25
residential sales across India’s top seven cities are expected to witness double digit growth in 2024-25. The area sold in Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Hyderabad, Pune, Kolkata, Chennai is likely to increase 10-12% to 785-800 million sq ft in the current financial year, on a high base of 2023-24, said ratings agency ICRA.
Despite the moderation in the sales growth rate, the overall sales velocity, collections, and inventory position are estimated to remain healthy in 2024-25.
The launches are expected to rise 12% on-year to 767 million sq ft in the current financial year, on an aggregate basis across the top seven cities, supported by decadal low inventory, comfortable years-to-sell (YTS, calculated as unsold inventory/sales in last 12 months) and healthy demand.
The inventory declined to 687 million sq ft as of June from 732 million sq ft as of March 2023 and the YTS remained low at 0.9 time as of June, backed by healthy sales and calibrated launches.
“With epic sales and low leverage, the dream run continues for residential real estate players. The residential sales witnessed a healthy growth of 19% on-year in FY2024. The sales consistently reached new peaks in each successive quarter over the past eight quarters (except Q1 FY2024 and Q1 FY2025, given that the first quarters are traditionally laggards) despite elevated home loan interest rates and rising property prices,” said Anupama Reddy, Co-Group Head & Vice President– Corporate Ratings, ICRA.
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