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New Delhi: housing sales According to the rating agency, seven cities grew by 11 per cent in volume terms in the third quarter of the current financial year due to better demand ICRA, “At 149 million sq ft (MSF), the top seven cities in India reported sales in Q3 FY2023, the highest quarterly sales recorded in ten years,” ICRA said in a statement on Wednesday.
residential The real estate sector witnessed strong demand with an 11 per cent year-on-year (YoY) growth in sales in Q3 of FY2023.
The area sold in the first nine months of FY23 increased to 412 msf as against 307 msf in the corresponding period last year.
Post the pandemic, ICRA said there has been a gradual change in the overall segment-wise composition with an increase in the share of luxury and mid-segments in overall sales in the top seven cities – Bangalore, ChennaiHyderabad, Kolkata, Mumbai Metropolitan Region (MMR), National Capital Region (NCR) and Pune.
The share of luxury and mid segments in total sales has increased from 14 per cent and 36 per cent, respectively, in FY20 to 16 per cent and 42 per cent, respectively, in April-December of FY23.
Anupama Reddy, Vice President & Co-Group Head – Corporate Ratings at ICRA said: “The value of the area sold residential real estate The sector is expected to grow by 8-12 per cent in FY2023 and 14-16 per cent in FY24.”
It is based on a sample of top 12 listed real estate developers. The shift towards larger locations/upgrades and preference for home ownership is expected to continue.
The rating agency said that despite a rate hike by the Reserve Bank of India (RBI) during the current financial year, home loan interest rates are still lower than peak pre-Covid interest rates and affordability remains healthy.
“Low inventory overhang and calibrated launches work in favor of developers, but the impact of growth slowdown on the job market and rising interest rates pose risks,” Reddy said.
Unsold inventory levels fell to 839 msf by December 2022 from 923 msf in December 2021. As a result, ICRA said the years-to-sale (YTS) for unsold inventory fell to a decade low of 1.5 years.
In addition, the rating agency said average selling prices are expected to increase by 10 per cent year-on-year in Q3 of FY23, driven by a partial pass-on of increase in input costs, as well as changes in product mix. with a high share. luxury units.
Builders in ICRA’s sample set included Ashiana Housing, Brigade Enterprises, DLF Ltd, Godrej Properties, Keystone Realtors, Kolte-Patil Developers, Macrotech Developers, Mahindra Lifespace Developers, Prestige Estate Projects, Puravankara, Sobha Ltd and Sunteck Realty.
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