Residential Real Estate to Witness Robust Growth in FY25: JM Financial Report

JM Financial forecasts a strong performance for the residential real estate market in FY25, with an 18% growth expected. The promising trend follows a remarkable FY24, where sales and prices saw significant increases. Future growth is supported by low inventory levels, increasing disposable income, and consistent demand.

According to JM Financial, the residential real estate market is set to remain strong in FY25, following an exceptionally successful FY24. The market is projected to grow by 18 per cent, with 12 per cent from an increase in units sold and six per cent from higher prices.

The report anticipates moderate supply growth that will align with the demand for new purchases. FY24 saw the highest-ever absorption rate, with a 20.1 per cent YoY increase in pan-India absorption and an 11.5 per cent YoY rise in supply. This led to inventory levels in cities dropping to a record low of 12 months.

The sector recorded an average price increase of 9.0 per cent YoY during FY24, indicating 29 per cent overall market growth. Pre-sales for listed companies grew by 39.5 per cent YoY, showing continued market share gains for Tier 1 developers. Low inventory, increasing disposable income, and limited supply expansion suggest continued growth. Tier 1 developers are poised to capture more market share by diversifying into new micro markets and offering high-end products.

(With inputs from agencies.)