Growth momentum of large, listed developers stays strong

Continuing premiumisation, favourable affordability along with rising per capita incomes should help large, listed residential developers build 10-12 per cent volume growth this fiscal after an estimated growth of 14 per cent on a high base in fiscal 2024, says a report by CRISIL Ratings.

These developers have a relatively good record of timely and quality delivery, which explains the greater consumer preference for them. Accordingly, their market share is seen doubling to 30-32 per cent in fiscal 2025 (chart 1 in annexure), compared with fiscal 2019 before the onset of the Covid-19 pandemic.

Gautam Shahi, Director, CRISIL Ratings, said: “With robust double-digit demand growth over the past three fiscals, there has been steady inventory liquidation in the top seven cities to 2.4 years in fiscal 2024 from around 2.8 years in fiscal 2023 and ~four years before the pandemic. Despite a healthy launch pipeline, in line with incremental demand, we expect inventory to remain comfortable at 2.1-2.3 years this fiscal.”