Home sales may grow 10% this fiscal: Crisil

Residential real estate developers across the top six cities are expected to clock 8-10 per cent sales growth this fiscal despite rising interest rates and home prices last financial year, according to a report.

Continuing strong collections and lower debt levels will strengthen developers' credit profiles too, Crisil Ratings said in a report on Wednesday.The cities mapped are Hyderabad, Mumbai Metropolitan Region, Delhi-NCR, Bengaluru, Pune and Kolkata.

Buoyant residential demand across the mid, premium and luxury segments led to robust sales in the past two fiscals. This helped strengthen the leverage and credit profiles of realtors and the same should sustain over the medium term, said the report based on 11 large and listed and 76 small and mid-sized residential developers accounting for 35 per cent of sales.

According to Aniket Dani, a director of the agency, demand for residential real estate is rising because of healthy economic growth and offices continuing with a hybrid working model, especially for bigger and premium residences. This demand is expected to hold firm at 8-10 per cent despite a rise in interest rates and capital value for the aforesaid reasons, and the demand momentum is expected to continue on the back of inventory being at comfortable levels of around three years of sales on an average against 4.5 years before the pandemic.