Real Estate Developers Maintain Steady Growth Amid Housing Demand Challenges
Despite a 28% year-on-year decline in housing sales across major Indian cities, top real estate developers reported steady growth in Q4 FY25, driven by strong pre-sales and demand in the mid to premium segments.
Real EstateHousing SalesPresalesMidsegmentGovernment InitiativesReal Estate NewsJun 05, 2025
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.
Frequently Asked Questions
What factors led to the decline in housing sales in Q4 FY25?
The decline in housing sales can be attributed to high property prices, economic uncertainties, and a slowdown in new project launches.
Which real estate developers reported significant growth in pre-sales?
Major developers such as DLF, Godrej Properties, and Puri Realty reported significant growth in their pre-sales, posting growth between 7 and 48 per cent.
Why are developers focusing on mid-segment projects?
Developers are focusing on mid-segment projects to broaden their customer base and reduce dependency on high-end projects, which are more susceptible to market fluctuations.
What government initiatives are supporting the real estate sector?
The government has introduced subsidies, tax benefits, and relaxed regulations to promote affordable housing and stimulate demand in the real estate market.
How is the BSE Real Estate Index performing?
The BSE Real Estate Index, which tracks the performance of leading real estate companies, showed a positive trend during Q4 FY25, reflecting the market’s confidence in the sector.
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