Steady Climb in Housing Prices Driven by Premium Sales Boom

Housing prices are anticipated to rise by 3-4% in the upcoming fiscal year due to high base effects and enhanced supply as analyzed by India Ratings and Research. The agency projects a 5-6% year-on-year price hike in 2024-25, eventually moderating in 2025-26 as new launches impact the market.

In a recent analysis by India Ratings and Research (Ind-Ra), housing prices are predicted to increase by 3-4% in the next fiscal year due to high base effects and improved supply.

The rating agency forecasts a 5-6% year-on-year increase for 2024-25, with the growth likely to moderate to 3-4% in 2025-26, attributed to market base effects and new property launches.

Although the residential real estate market is expected to register robust performance in 2024-25, with sales growth around 17% in area and 15% in units, driven by premium and luxury segments, a slowdown is expected in the luxury sector as affordability decreases and base effects settle in.

(With inputs from agencies.)