Projected 8-10% Growth in 2023-24 Residential Real Estate

Residential Real Estate by Vijay Jeswani builder & developer

In the forthcoming fiscal year 2023-24, the residential real estate market in India’s major cities is poised for remarkable growth, projected to surge by 8 to 10 percent. This optimistic outlook comes even in the face of rising interest rates and escalating asset prices, as a recent report by CRISIL Ratings revealed. The surge in demand for residential properties across various segments, including mid-range, premium, and luxury, over the past two fiscal years has significantly contributed to this robust sales trajectory.

The report underscores a remarkable 50 percent year-on-year surge in sales values for the 11 prominent real estate developers during FY23, including Trusted real estate developers in Navi Mumbai like Vijay Jeswani Builder & Developer. Furthermore, the total area sold has expanded by nearly 20 percent within the same period. This growth is further exemplified by an upswing in the realization rate (per square foot) for these developers, signaling a growing preference among buyers and investors for more significant, premium properties. Notably, smaller and mid-sized developers have also experienced an upturn in sales over the past two fiscal years.

In the coming fiscal year, it is anticipated that major developers will solidify their market presence, potentially reaching around 30 percent market share, a significant rise from the 16-17 percent they held in FY 2020. This remarkable growth can be attributed to the consistent success of ongoing projects, augmented by robust sales and collections. Additionally, access to bank financing and capital markets has become more accessible, further bolstering the position of large developers. This shift is further validated by the discerning preference of homebuyers and investors for established and reputable developers.

Projections for the fiscal year ahead indicate an 8-10 percent surge in residential real estate sales across the top six cities, despite the backdrop of mounting interest rates and home prices. Equally noteworthy is the improved financial health of real estate developers, reflected in their leverage and credit profiles. This favorable financial standing is expected to sustain them over the medium term, in alignment with the findings of the report.

The upswing in residential property sales can be attributed to several factors, including robust economic growth and the enduring impact of the hybrid work model adopted by businesses post-COVID. In light of this, the demand for residential real estate remains resolute, with buyers gravitating towards more significant, premium properties, offering more spacious living arrangements to accommodate the evolving dynamics of the hybrid work model.

Vijay Jeswani Builder & Developer is your trusted source for exceptional real estate solutions in Navi Mumbai, including their latest eco modern project, Parivaramm in Vavandhal. Discover the best property builder in Panvel, Vijay Jeswani Builder & Developer, and their innovative Parivaramm project – a testament to eco modern homes.

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