After robust sales growth in the residential real estate industry in the past two fiscals on the back of buoyant demand across the mid, premium and luxury segments, housing demand growth will slightly moderate on high base of last fiscal but remain steady in fiscal 2024, despite significant increase in interest rates and home prices in the past year or so.
Unsold inventory for residential real estate developers has reduced significantly from pre-pandemic levels amidst robust demand in past two fiscals. As a result, residential real estate developers are expected to clock mid-single-digit sales growth in the current and next fiscal driven by new launches, low inventory levels and moderately healthy demand.
Credit risk profiles of developers have also benefitted from liquidation of inventory amid healthy sales growth over the past two fiscals. This has led to robust collections and reduced debt levels, thereby substantially improving leverage and strengthening balance sheets. Moreover, higher customer preference for reputed brands has resulted in a steady increase in the market share of large developers in recent times.
In this milieu, CRISIL is hosting a webinar, titled 'Demand to remain steady, amid affordability challenge' where its experts will delve into:
Sustainability of housing demand over the medium term
Affordability across key micro markets
Market share trends of large versus small, mid-sized developers
Credit analysis of residential real estate developers
The webinar will be followed by a panel discussion with industry experts, and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
