India Ratings & Research, a leading rating agency, has forecasted a modest growth trajectory for residential housing prices in the fiscal year 2024-25 (FY25), projecting a subdued rise of approximately 5%.
This outlook is primarily attributed to the base effect and the significant volume of new property launches planned in the market. The rating firm’s latest report highlights that residential property prices witnessed a notable year-on-year increase of 22% at the commencement of the fiscal year 2023-24 (FY24). However, the pace of growth is expected to decelerate considerably, with the anticipated rise pegged at around 5% year-on-year for FY25. According to India Ratings & Research, several factors contribute to this subdued outlook. Firstly, the base effect plays a crucial role, as the substantial price surge observed in the previous fiscal year serves as a benchmark against which the growth in FY25 is measured. Additionally, the real estate sector is poised to witness a surge in new project launches, resulting in heightened competition and exerting downward pressure on prices.
The housing market landscape in India continues to evolve, influenced by macroeconomic factors, regulatory changes, and shifting consumer preferences. Amidst this dynamic environment, India Ratings & Research provides valuable insights into the trajectory of residential property prices, enabling stakeholders to make informed decisions. The forecasted 5% growth in FY25 underscores the need for developers, investors, and homebuyers to adapt to changing market conditions and strategise accordingly. With affordability and value proposition becoming increasingly pivotal, stakeholders must focus on delivering quality housing solutions that align with evolving consumer demands. India Ratings & Research remains committed to monitoring market trends and offering comprehensive analysis to facilitate informed decision-making in the real estate sector. As the residential housing market navigates through various challenges and opportunities, stakeholders are urged to stay abreast of the latest developments and leverage analytical insights to navigate the evolving landscape effectively.
