Housing sales volume of Tier 1 real estate developers dips by 6% in FY25: Ind-Ra
Four out of 11 listed real estate developers witnessed a dip in pre-sales of residential real estate sales in FY25, a report by Ind-Ra said
Housing sales by Tier-1 residential real estate players likely declined in volume terms in FY25, signalling a slowdown in the residential real estate cycle compared to the strong growth seen in FY23 and FY24. According to a report by India Ratings and Research (Ind-Ra), sales volumes fell 6% year-on-year in FY25, with a sharper 13% YoY decline in Q4 alone.
Despite the dip in volumes, sales value rose 9% YoY in both Q4FY25 and the full fiscal year, driven by better realisations and an improved sales mix. Ind-Ra expects booking value growth to moderate in FY26 from the 23% YoY rise seen in FY25, due to a high base effect from FY22 to FY25.
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The agency forecasts low-to-mid single-digit growth in Tier-1 booking values in FY26, supported by ongoing sector consolidation, policy measures, and resilient demand in the mid-premium segment.
“The 4QFY25 results reflect the impact of a high base effect, which has pulled down volumes. However, an improved product mix has supported better realisations, leading to modest growth in booking value,” said Mahaveer Shankarlal Jain, Director, Corporate Ratings, Ind-Ra.
"The residential real estate cycle appears to be decelerating, influenced by both the high base effect and delays in project launches. The recently announced interest rate cut could serve as a significant tailwind, particularly for the affordable and mass-market segments, and is expected to support mid-single-digit growth in FY26 bookings," Jain added.
