Modest Growth Forecast: Housing Sales and New Supply Trends

ICRA projects a modest rise in housing sales volume by 1-4% and new supply growth by 6-9% across seven major Indian cities this fiscal year. Average selling prices are expected to appreciate by 3-5%. New project launches may reach 620-640 million square feet in 2025-26, despite previous setbacks.

ICRA, a leading rating agency, announced on Monday a projected modest 1-4% increase in housing sales volume this fiscal year. Meanwhile, new housing supply is anticipated to rise by 6-9% across seven major Indian urban hubs.

ICRA's statement detailed expectations of a 3-5% appreciation in average selling prices. The agency forecasts new project launches to reach 620-640 million square feet in the 2025-26 fiscal year, despite a sharp 14-17% decline anticipated in 2024-25 owing to approval-related hurdles.

According to Anupama Reddy, Vice President at ICRA, sales areas might have decreased by 4-7% in the 2024-25 fiscal. However, these are expected to recover, posting a growth of 1-4% in FY26. The residential real estate sector's stable outlook is supported by larger players outperforming the industry's standard trends.

(With inputs from agencies.)