India’s Residential Real Estate Sales Set for Strong Growth in 2023-24, Predicts Crisil Ratings

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    Crisil Ratings, a leading credit rating agency, has projected a positive outlook for India’s residential real estate sector in the fiscal year 2023-24. Despite the recent increase in interest rates and asset prices, residential real estate developers in major cities are expected to achieve a sales growth rate of 8-10%, as stated in a recent report by Crisil Ratings.

    Over the past two financial years, the mid, premium, and luxury segments have witnessed strong sales growth, contributing to the overall buoyancy in residential demand. This trend is expected to continue in the current fiscal year.

    Crisil Ratings highlighted that real estate developers have witnessed an improvement in their leverage and credit profiles, which is expected to be sustained over the medium term. This development indicates a positive trajectory for the industry.

    In terms of sales performance, the report reveals that the 11 large and listed real estate developers experienced a remarkable 50% year-on-year increase in sales value during the last fiscal year.

    Aniket Dani, Director of CRISIL Market Intelligence and Analytics, explained, “The steady demand for residential real estate this fiscal year can be attributed to healthy economic growth and the ongoing hybrid working model in offices. The market particularly favors bigger and premium residences.”

    According to Crisil Ratings, large developers are expected to gain further market share, reaching 30% in the current fiscal year compared to 16-17% in the fiscal year 2020.

    The positive growth forecast for India’s residential real estate sector aligns with the optimistic outlook for the economy as a whole. With the market showing resilience and developers witnessing an upswing in sales, the industry is expected to continue on its path of recovery and growth in the coming months.

    As the real estate market evolves and adapts to changing circumstances, developers are likely to focus on meeting the evolving demands of homebuyers, ensuring the availability of a diverse range of housing options to cater to different segments of the population.

    Overall, the Crisil Ratings report paints a promising picture for India’s residential real estate sector in the fiscal year 2023-24, highlighting the potential for steady growth and enhanced market share for large developers.

    Also Read :- Real Estate Industry Veterans Welcome RBI’s Decision to Maintain Repo Rate, Aiming for Stability and Growth

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