New Delhi, December 11 (IANS). Many big residential projects can be seen in India in the first quarter of 2025. The reason for this is the increasing inclination of people towards the premium segment. This information was given in a report by HSBC Global Research on Wednesday.
The report said that in the last four years, the share of ‘upgrade’ demand has been higher in the overall demand. This has helped developers get better pricing.
“We believe the market for developers is likely to grow as the demand for high-rise buildings in the Indian economy continues to grow,” the report further said.
“Developers are likely to deliver larger launches in the first quarter to achieve their FY2025 pre-sales guidance. We expect demand to shift to a more middle-income level,” HSBC said in a note. “Selling prices and margins will be impacted.”
The note further said that the middle income group of the economy will start getting the benefits of the strength of the high income group.
Residential real estate pre-sales volume and value have grown at a compound annual growth rate (CAGR) of 18 per cent and 31 per cent in the last four years (2021-24).
The report further said that residential launches are expected to increase in 2025, as it was weak in 2024. However, due to the high base the growth rate will be impacted. Prices may remain under pressure due to limited unsold inventory. This is likely to increase pre-sales.
The report said that stocks of real estate companies are sensitive to interest rates. This sector will benefit from the cut in interest rates in 2025.
HSBC Global Research expects the pace of launches to accelerate as approval issues are resolved and sales pick up in 2025.
–IANS
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