Residential real estate sales to lag commercial in FY23: CRISIL

On the commercial real estate front, after a healthy performance in the first half of this financial year, net leasing will slow down in the second half owing to fears of an impending global recession

CRISIL expects primary residential sales to post modest volume growth of 3-8 per cent on-year in 2022-23 (FY23) on a high base of the previous year for the top eight cities.

The increase in primary residential sales will be despite a reversal in the purchasing power of homebuyers.

Affordability has taken a hit in FY23 owing to an uptick in interest rates and capital values, and a reversal of stamp duty cut across key states. The demand momentum has sustained despite a rise of 6-10 per cent on-year in capital values across cities, following a steep increase in raw material