Tier 1 Real Estate Developers See 6% Decline in Housing Sales in FY25: Ind-Ra Report
According to a report by India Ratings and Research (Ind-Ra), Tier 1 residential real estate developers experienced a 6% decline in housing sales volume in FY25, with a sharper 13% drop in Q4. Despite the decline, sales value increased by 9% YoY, driven by better realizations and an improved sales mix.
Real EstateHousing SalesIndraTier 1 DevelopersMarket TrendsReal Estate NewsJun 16, 2025
Despite the dip in volumes, sales value rose 9% YoY in both Q4FY25 and the full fiscal year, driven by better realizations and an improved sales mix. Ind-Ra expects booking value growth to moderate in FY26 from the 23% YoY rise seen in FY25, due to a high base effect from FY22 to FY25.
The agency forecasts low-to-mid single-digit growth in Tier-1 booking values in FY26, supported by ongoing sector consolidation, policy measures, and resilient demand in the mid-premium segment.
The 4QFY25 results reflect the impact of a high base effect, which has pulled down volumes. However, an improved product mix has supported better realizations, leading to modest growth in booking value, said Mahaveer Shankarlal Jain, Director, Corporate Ratings, Ind-Ra.
The residential real estate cycle appears to be decelerating, influenced by both the high base effect and delays in project launches. The recently announced interest rate cut could serve as a significant tailwind, particularly for the affordable and mass-market segments, and is expected to support mid-single-digit growth in FY26 bookings, Jain added.
Frequently Asked Questions
What is the main reason for the decline in housing sales by Tier-1 developers in FY25?
The main reason for the decline in housing sales by Tier-1 developers in FY25 is the high base effect from the strong growth seen in FY23 and FY24, along with delays in project launches.
How did the sales value perform in FY25 despite the decline in volume?
Despite the decline in volume, sales value rose 9% YoY in both Q4FY25 and the full fiscal year, driven by better realizations and an improved sales mix.
What does Ind-Ra forecast for Tier-1 booking values in FY26?
Ind-Ra forecasts low-to-mid single-digit growth in Tier-1 booking values in FY26, supported by ongoing sector consolidation, policy measures, and resilient demand in the mid-premium segment.
What impact is the recently announced interest rate cut expected to have on the real estate market?
The recently announced interest rate cut is expected to serve as a significant tailwind, particularly for the affordable and mass-market segments, and is expected to support mid-single-digit growth in FY26 bookings.
What factors are influencing the deceleration in the residential real estate cycle?
The deceleration in the residential real estate cycle is influenced by the high base effect from previous years and delays in project launches.
Related News Articles
India's Rise to Realty Prominence: A Billion-Dollar Boom
India is accelerating to become the real estate capital of Asia, with a total valuation of Rs 14.2 trillion among the top 100 realty companies.
Maharashtra Cabinet Renames Pune Airport After Sant Tukaram Maharaj
The Maharashtra Cabinet has approved a proposal to rename Pune airport after the 17th-century Warkari saint and poet, Sant Tukaram Maharaj.
The Downfall of Real Estate Moguls: Alexander Brothers Arrested in Miami
In a shocking turn of events, the renowned real estate moguls, the Alexander Brothers, were recently arrested in Miami. This news has sent ripples through the business community, leaving many to wonder what led to their downfall.
Luxury Homes, Toxic Air: The Urban Pollution Paradox in India
Nithin Kamath, a prominent real estate analyst, highlights the growing concern of urban pollution in major Indian cities like Delhi, Mumbai, and Bengaluru. Despite seeing a surge in luxury real estate, these cities struggle with alarming levels of air pol
Tragic Incident: Two Workers Killed, One Injured as Slab Collapses in Chikhla Mines
A devastating slab collapse in the Chikhla mines of Manganese Ore (India) has resulted in the death of two workers and left one injured. The incident has raised serious concerns about safety protocols in the mining industry.
Women Home Buyers Witness 14% Surge in 2024: Report
A recent report by Square Yards, titled 'Key Holders of Change - Women Driving Real Estate Growth and Transformation,' reveals a significant 14% increase in women homebuyers in 2024.