India’s residential real estate sector is projected to maintain its upward trajectory in FY25, with average sale prices anticipated to increase by 5-6% compared to the previous year. This growth is primarily attributed to a strategic shift by developers towards the luxury housing segment, which has been driving demand and pricing.
While overall sales growth might moderate slightly from the preceding year’s robust performance, the sector’s fundamentals remain strong. Key metrics such as sales velocity, collections, and inventory levels are expected to remain healthy. In terms of overall sales volume, the top seven cities in India are projected to witness double-digit growth, with the total area sold estimated to reach between 785 and 800 million square feet by the end of FY25.
This positive outlook reflects the ongoing recovery of the real estate market and the sustained demand for residential properties, particularly in the premium segment. The industry’s focus on delivering quality projects and catering to evolving consumer preferences is expected to further bolster growth in the coming fiscal year.
