FY23 Residential Real Estate Outlook: Market on Firm Footing, Healthy Demand: IndRa

India Ratings and Research (Ind-Ra) has maintained an improving outlook for the residential real estate for FY23, expecting the growth and recovery momentum in the market (witnessed in FY22) would continue into this fiscal. Between adapting to the pandemic's impact, industry issues and government policies, the Indian real estate sector anticipates a robust end-user demand in FY23. The steady performance and quick revival in FY22 have likely helped the sector regain buyer's trust.

Ind-Ra expects the housing growth momentum to continue on the back of a strong demand in FY23. Ind-Ra expects that housing sales to rise around 12% yoy in FY23. In FY22, for the top eight real estate clusters, housing sales increased 42% yoy on a pandemic-impacted lower base. In FY23, Ind-Ra expects well-known and trusted developers to witness better sales, and affordable housing segments to continue to claim around 50% share of the total sales.