According to Antique Stock Broking's sector update report, India's residential real estate sector has shown indications of stagnation following a period of expansion.
Although all new project launches by covered listed firms drew a positive response in 4QFY25, the majority of Expressions of Interest (EoI) were built in 2Q/3Q, according to the research.
However, walkins and conversions have slowed in recent months, owing to financial market volatility, a bleak IT sector outlook, and economic growth concerns that have encouraged buyers to delay purchases in search of greater clarity or better prices, according to the study. Similarly, the premium and luxury categories saw a drop in demand.
According to the research, increased supply in the Mumbai Metropolitan Region (MMR) has given purchasers greater bargaining leverage. Even renowned builders are providing inducements or discounts in South and SouthCentral Mumbai. Demand in the midincome category across suburbs and Thane remains consistent, but lacks the excitement of prior years.
Similarly, southern cities such as Bengaluru and Hyderabad are seeing poor demand, particularly for residences worth more than Rs 20 million. Despite ongoing clearance issues in Bengaluru, demand for below Rs 20 million has remained constant.
The rate of new project launches has decreased in the northern regions of the nation, although well-located properties continue to attract purchasers.
Despite the overall cooling, the report adds that some developers outperformed forecasts. Aditya Birla Real Estate, Godrej Properties, Prestige Estates, and Macrotech Developers all had better-than-expected presales in Q4. Analysts believe that much of this demand was frontloaded in previous quarters.
Looking forward, while inventory levels are decent, the business may face price stability or modest adjustments, particularly if economic challenges continue. Both investors and consumers appear to be more cautious in what is becoming an increasingly supply-rich and demand-sensitive market.
