According to a recent report by CRISIL Ratings, residential sales are expected to grow steadily at 10–12% in FY2025 and FY2026. Volume-wise, the demand could rise by 5–7%, while average prices may increase by 4–6%.
The report highlights a major shift in consumer preferences post-pandemic. Buyers are increasingly opting for larger, premium homes. While luxury housing launches accounted for just 9% in 2020, this figure surged to 37% by 2024. CRISIL forecasts this share to rise further to 38–40% in FY2025–26.
Due to robust demand over the past three years, developers have increased their project launches. As a result, supply has slightly outpaced demand. The report estimates inventory levels to rise to 2.9–3.1 years, compared to 2.7–2.9 years previously.
With better sales performance, timely project deliveries, and joint development models, developers have improved their financial health. Equity flows through QIP (Qualified Institutional Placement) have reached 24%, up from 13–16% earlier.
The loan-to-operating cash flow ratio has also improved—from 5.6x in 2020 to just 1.1–1.3x now, enhancing developers’ credit profiles.
What Developers Are Saying
Sanjay Sharma, Director, SKA Group, says, “The pandemic changed how people view homeownership. Homes are now seen as a symbol of safety and lifestyle. Buyers prefer spacious layouts, open areas, and high-end amenities. This trend will continue to grow in the next two years.”
Saurabh Saharan, Group MD, HCBS Developments, says, “Gurugram and Dwarka Expressway are no longer just homebuying locations—they are smart investment zones. People want luxury homes that offer strong returns while enhancing their lifestyle and status.”
Kushagr Ansal, Director, Ansal Housing, says, “Post-COVID, buyers seek a complete lifestyle experience. Features like health clubs, yoga zones, co-working spaces, and community areas are now essential in luxury projects. Buyers are moving away from older apartments to modern communities.”
Manit Sethi, Director, Excentia Infra, says, “People want homes that integrate work, relaxation, and entertainment under one roof. This trend is no longer limited to metro cities—Tier 2 cities like Dehradun are also seeing a shift towards luxury homes. Smart tech, premium fittings, and sustainable designs are redefining the segment.”
Neeraj Sharma, MD, Escon Infra Realtors, says, “Young professionals are willing to pay a premium for luxury features. Smart homes, private terraces, and advanced security are becoming necessities. We are planning several new luxury launches to meet this demand.”
Sanjeev Arora, Director, 360 Realtors, says, “Technology is reshaping luxury living. Today’s buyers prioritise smart features like home automation, app-based maintenance, and green certifications. AI, voice command systems, and energy-efficient solutions will soon become the new normal.”
While the premium segment gains momentum, the share of affordable and mid-income housing is shrinking. The report predicts affordable housing launches to decline to 10–12%, and mid-segment to 19–20% in 2025–26, compared to 30% and 40% respectively in 2020. High land prices and rising construction costs have made these segments less attractive for developers.
