According to a report by Crisil Ratings, residential real estate sales in top cities in India are expected to grow between 8 and 10 percent in the fiscal year 2023-24. This growth is projected despite the increase in interest rates and asset prices.
Over the past two financial years, there has been a rise in demand for residential properties in the mid, premium, and luxury segments that result in strong sales growth.
This blog will discuss the growth of residential real estate sales and how it affects the real estate growth in Kolkata in this fiscal year (2023-24). So, read on!
Residential Real Estate Sales: Grow 8-10%
The report states that sales by the 11 major real estate developers have increased by 50 percent in value terms compared to the previous year (FY23), and the area of properties sold has grown by nearly 20 percent.
These developers have been able to achieve higher realizations per square foot, indicating a growing preference among buyers and investors for larger and premium homes. Additionally, small and mid-sized developers have also experienced an increase in sales over the past two financial years, as per CRISIL’s findings.
As per the recent report, prominent real estate developers are projected to experience a significant rise in their market share during the current financial year. Their market share is anticipated to reach around 30% compared to 16-17% in FY 2020.
This growth can be attributed to strong sales and successful collections from ongoing projects, along with improved access to bank finance and capital markets. Furthermore, prospective home buyers and investors are showing a preference for reliable and reputable developers.
How Does It Affect On The Real Estate Growth In Kolkata?
Despite the upward trend in interest rates and home prices, residential real estate developers in the top six cities(Mumbai, Delhi NCR, Bengaluru, Pune, Kolkata, and Hyderabad) are expected to achieve an 8-10% increase in sales during this fiscal year. The report also highlights an enhancement in the leverage and credit profiles of real estate developers, which bodes well for their sustainability in the medium term.
The rise in residential property sales can be attributed to robust economic growth and the adoption of a hybrid working model. The demand for residential real estate remains stable, with buyers showing a preference for larger and premium homes that provide more space, as they continue to work in a hybrid model.
After the pandemic, people like to invest money in a large space real estate property where they get all amenities, and all commodities.