Residential rates are expected to increase by less than 5 percent this financial year.
The reason is that new launches are huge.
Will rising house prices be a bit of a pain? Will there be any break in the pace of residential rates, which have been rising steadily every year? The answer is yes. A report by India Ratings and Research has said that house price growth is expected to be less than 5 percent this fiscal year. It is analysed that the reason for this is a large number of new launches coming. On an annualised basis, house prices have increased by 22 percent in fiscal 2024. However, the report estimates that it will be limited to 5 percent in the latest financial year.
In the financial year 2023, house prices increased by 14 percent due to increased demand for stock due to the clearance of mostly old stock, a rise in land prices, and the price of essential commodities. The report revealed that the residential real estate sector will continue to remain stable in this financial year, with interest rates stable and the availability of affordable houses at expected levels, so the price increase will be modest. Residential real estate has performed exceptionally well in FY 2024, with house sales in eight major cities of the country increasing by 25 percent year-on-year in the last nine months despite rising house prices and interest rates. In this context, it is estimated that the sales of houses will grow by 8 percent to 10 percent in this financial year as well.
