Housing prices are likely to rise by an average 4-6 per cent in the medium term after recording a double-digit growth in the last two financial years, according to Crisil Ratings.
“Residential real estate developers will see stable sales growth this fiscal and the next as demand steadies after three years of post-pandemic recovery. Demand or volume is seen rising 5-7 per cent and average prices 4-6 per cent,” Crisil said in a statement.
With supply expected to continue exceeding demand, inventory levels should inch up this and next fiscal, it added.
However, the rating agency said that strong collections and deleveraged balance sheets of developers will keep their credit profiles healthy.
Crisil has analysed 75 real estate companies, accounting for around 35 per cent of the residential sales in the country.
During the three financial years, the rating agency said that sales in value terms clocked a compound annual growth rate (CAGR) of around 26 per cent, and demand (volumes) cloc