Property News: If you are planning to buy a new house, there is good news for you. House prices may soften in the coming days. Housing demand and prices are likely to moderate in the current financial year due to a higher comparative base. During this period, sales are expected to increase by 8 to 10 percent and prices by about 5 percent annually. This has been said in a report. Rating agency India Ratings and Research has maintained a neutral outlook for the residential real estate sector for the current financial year (2024-25) in its report released on Tuesday.
Growth rate likely to reduce
“Low interest rates and stability may support buying and prices,” the agency said in a statement. However, given the high comparative base of the last financial year, the growth rate is likely to be lower.” The residential real estate market recorded a strong performance during the first 9 months (April-December) of the last financial year. During this period, despite price hikes and stable interest rates, sales for the top eight real estate clusters grew by more than 25 percent year-on-year.
New projects have increased significantly
Mahavir Shankarlal Jain, director of corporate ratings at India Ratings, said, “Most sectors are seeing rising prices. We estimate that pre-sale growth in the current financial year will be eight to 10 percent on an annual basis. The number of completed houses in the premium and luxury segments has increased in the financial year 2023-24. The reason for this is the increase in new projects along with the rapid growth in sales and receipts. The rating agency said that at the end of the last financial year 2023-24, prices have increased by 22 percent on an annual basis. It is estimated to be around five per cent for the current financial year due to comparative base effect and plans to start a large number of new projects. According to India Ratings, significant growth is expected in medium and small cities (Tier 2 and Tier 3).
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