 "affordable housing")
Home prices in India are likely to increase by 4-6 per cent this year but rising per capita income will support demand, said a report on Tuesday.
Moderating inflation, stable commodity prices, a lower fiscal deficit, and a decline in global policy rates would set the stage for interest rate cuts to boost housing demand, according to CRISIL Ratings.
"Range-bound growth in capital values and likely moderation in interest rates in the second half of this financial year will ensure affordability improves following a decline in the past two financial years due to a sharp increase in interest rates and capital values," it said.
In terms of sales, the market share of 11 listed real estate developers in India is expected to double to 30-32 per cent this year, compared to 15 per cent in the pre-pandemic Financial Year 2018-19.
DLF Limited, Brigade Enterprises, Godrej Properties, Kolte-Patil Developers, Macrotech Developers, Mahindra Lifespace Developers, Prestige Estates Projects, Puravankara, Sobha, Shriram Properties and Sunteck Realty have a record of timely and quality delivery.
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CRISIL Ratings said that “continuing premiumisation”, affordability, and rising per capita income should help large, listed residential developers achieve 10-12 per cent growth in sales volume this year, following an estimated growth of 14 per cent last year.
"Large developers have already strengthened their credit profiles by deleveraging balance sheets through robust sales and collections over the past two years and focusing more on asset-light models, including joint ventures and joint development," said Pallavi Singh, associate director at CRISIL Ratings.
Real estate supply has shifted towards mid-to-premium and luxury homes and launches in the affordable segment are expected to remain subdued. "The share of launches in the mid-to-premium and luxury segment is estimated at 55 to 60 per cent for 2023-24, compared with 30 to 35 per cent before the pandemic," said the report.
