Real Estate Developers Maintain Steady Growth Amid Housing Demand Challenges
India’s top listed real estate developers reported steady growth in Q4FY25, supported by healthy pre-sales, even as earnings reflected signs of moderation amid elevated housing prices and subdued launches. “Q4FY25 was a steady quarter for top listed real estate developers, albeit with some signs of moderation compared to the aggressive growth observed in earlier quarters. Pre-sales remained strong across major cities, backed by continued demand in the mid to premium housing segments,” said Shobhit Agarwal, managing director and CEO, Anarock Capital.
According to Anarock, housing sales across key Indian cities declined by 28 per cent year-on-year (Y-o-Y) in Q4FY25. This decline can be attributed to a combination of factors, including high property prices, economic uncertainties, and a slowdown in new project launches. Despite these challenges, major developers such as DLF, Godrej Properties, and Puri Realty managed to post significant growth in their pre-sales.
All the top developers, except Oberoi Realty, posted a growth of anywhere between 7 and 48 per cent in their pre-sales. This growth underscores the resilience of the real estate market, particularly in the mid to premium segments. These segments continue to attract buyers due to their perceived value and long-term investment potential.
The BSE Real Estate Index, which tracks the performance of leading real estate companies, also showed a positive trend during the quarter, reflecting the market’s confidence in the sector. However, analysts caution that the market needs to address the issue of high property prices to sustain this growth in the long term.
In Mumbai, one of the key real estate markets in India, developers are focusing on projects that cater to the middle-income segment. This strategy is aimed at broadening the customer base and reducing dependency on high-end projects, which are more susceptible to market fluctuations. “The focus on mid-segment projects is a strategic move to ensure sustainable growth in the real estate sector,” said Anuj Puri, chairman, ANAROCK Property Consultants.
To further boost the market, the government has introduced several initiatives to promote affordable housing. These include subsidies, tax benefits, and relaxed regulations for developers. These measures are expected to stimulate demand and attract more first-time buyers into the market.
In conclusion, while the real estate sector faces challenges such as rising property prices and a slowdown in new launches, the strong pre-sales and government support indicate a positive outlook. Developers are adapting their strategies to cater to a broader range of buyers, which is crucial for the long-term health of the market.
