India To See Mega Residential Launches In Q1 2025: HSBC

New Delhi: India is set to witness mega residential project launches in the first quarter of 2025 after a strong ‘upgrade’ demand in the premium segment, and developers will need to pivot towards more mid-income housing as luxury housing hits a high base, a report by HSBC Global Research showed.

The past four years have been dominated by “upgrade” demand, serving developers well to achieve better pricing.

“We think another notable preference for high-rises in the Indian economy has increased the addressable market for developers,” said HSBC in the note.

In Q1, developers will attempt major launches to meet their FY25 pre-sales guidance and over the year, “we expect a demand shift to more mid-income levels, which has implications for sales value and margins,” the note said, adding that benefits of strength of the upper-income segment will start trickling down to the mid-income segment of the economy.

In the past four years (2021-24), residential real estate pre-sales volumes and value increased by compound annual growth rates (CAGRs) of 18 per cent and 31 per cent, respectively.