ICRA predicts double-digit growth in residential sales for India's top seven cities in 2024-25, with the area sold projected to increase by 10-12% to 785-800 million square feet. This expansion is fueled by excellent performance in 2023-24. Despite this modest rise, sales velocity, collections, and inventory levels are expected to remain stable. New launches are anticipated to grow by 12% year-on-year to 767 million square feet, driven by low inventory and robust demand.
 

Inventory fell to 687 million sq. ft in June from 732 million sq. ft in March 2023, with a low YTS of 0.9 times, indicating strong sales and restricted new releases. ICRA reported a 19% YoY increase in residential sales for FY24, with consistent quarterly peaks except for a weaker first quarter. Despite a 7% increase in area sales in the first quarter of FY25 due to postponed releases, double-digit growth is expected throughout the year. The replacement ratio stands at 0.9 times and is projected to remain around 1 for FY25. Gross debt for developers is likely to climb 6-7%, though leverage remains manageable. The average selling price increased by 11% in FY24 and is predicted to rise by 5-6% in FY25
 

Source: IBEF

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