Residential realtors such as Godrej Properties, Prestige Estates, Puravankara, Shriram Properties and Tata Realty are expected to post 25% growth in sales in FY23 and 10-15% on a high base in FY24.
This is despite moderate affordability due to rising interest rates, according to a Crisil Ratings study of 11 large listed residential real estate investors.
“Large developers generally have a good track record of on-time and quality delivery and are therefore preferred by clients. Large estate agents are likely to account for 40-45% of new launches this financial year, compared to less than 30% before the pandemic, increasing their market share share,” said Gautam Shahi, director, Crisil Ratings.
Residential property performance surpassed pre-pandemic levels and hit a new high in the July-September quarter as demand continued to pick up despite rising interest rates.
The builders covered by the rating agency reported sales of ₹ 31,000 crore in the first half of this fiscal, which is equal to their total revenue in fiscal 2020. The total is expected to touch ₹ 65,000 crore for this fiscal , up 110% from pre-pandemic levels.