According to India Ratings and Research, the residential real estate market in India is projected to grow by 9% in FY24. Several factors will contribute to this growth:
- Steady demand: The demand for housing in India is expected to remain strong in FY24 due to rising disposable incomes, increasing urbanization, and the government’s emphasis on affordable housing.
- Affordability: Housing prices in India are still relatively affordable compared to other countries, making it easier for first-time buyers to enter the market.
- Government support: The government is offering incentives such as tax breaks and subsidies to the real estate sector, which will stimulate demand and investment.
The report highlights that growth in the residential real estate market in FY24 will vary across cities. Tier II and III cities are projected to experience the highest growth, while tier I cities will see more moderate growth.
Overall, the outlook for the residential real estate market in India is positive in FY24, with strong demand and government support driving growth.
Here are additional details from the report:
- Housing sales are expected to reach 3.3 million units in FY24, up from 3 million units in FY23.
- Volume growth of 4-6% and capital value growth of 3-5% will drive the increase in housing sales.
- Tier II and III cities are anticipated to account for 55-60% of housing sales in FY24.
- The average housing price is expected to rise by 5-7% in FY24.
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