Source: Business Standard (

Home prices in India are likely to increase by 4-6 per cent this year but rising per capita income will support demand. Moderating inflation, stable commodity prices, a lower fiscal deficit, and a decline in global policy rates would set the stage for interest rate cuts to boost housing demand, according to CRISIL Ratings.

“Range-bound growth in capital values and likely moderation in interest rates in the second half of this financial year will ensure affordability improves following a decline in the past two financial years due to a sharp increase in interest rates and capital values,” it said.

CRISIL Ratings said that “continuing premiumisation”, affordability, and rising per capita income should help large, listed residential developers achieve 10-12 per cent growth in sales volume this year, following an estimated growth of 14 per cent last year.

Real estate supply has shifted towards mid-to-premium and luxury homes and launches in the affordable segment are expected to remain subdued. “The share of launches in the mid-to-premium and luxury segment is estimated at 55 to 60 per cent for 2023-24, compared with 30 to 35 per cent before the pandemic,” said the report.