According to India Ratings and Research (Ind-Ra), the housing industry in India is predicted to continue its momentum with sales increasing at a rate of 9% year-over-year in the current fiscal year 2023-24, supported by a steady and healthy demand.
Grade I players are projected to see better liquidity than lower tiers in 2023-24 and sales growth of 15-18% on-year.
Residential sales in the top eight Indian cities, including Mumbai Metropolitan Region (MMR), Bengaluru, Chennai, Hyderabad, National Capital Region (NCR), Pune, Ahmedabad, and Kolkata, increased by 18% year-over-year to 392 million square feet in 2022-23, according to Liases Foras data as of March 2023. This increase was driven by a consistent and healthy demand.
Following the pandemic, there was a sharp rise in demand for housing, driven by buyers’ revived interest and improved perceptions. Due to increases in market share and expansion into new areas, the ratings agency anticipates the grade I players to provide strong operational performance in the current fiscal year.
Based on Liases Foras data for 2022-23, new launches caused unsold inventory levels to grow to 1,289 million square feet, while total quarters to sell (QTS) remained consistent at roughly 13 quarters as a result of an 18% year-over-year increase in sales and a 20% increase in inventory.
Furthermore, the sector witnessed new and enhanced product launches in response to market demand, resulting in a reasonable demand-price balance. Overall, new launches were up 60% from a year ago to 551 million square feet in 2022-23. The price increases are also expected to moderate in the current financial year, with the prices already having increased by 10-13% in 2022-23.
