Affordability, after improving upto 20% between fiscals 2016 and 2021, had started declining from the second half of fiscal 2022.

 

NEW DELHI: The momentum in housing demand across India's top six cities i.e. Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Pune, Kolkata, and Hyderabad, is expected to continue this fiscal and grow 5-10% despite rising property prices, interest rates and a high-base effect, according to Crisil.

 

The leverage and credit profiles of real estate developers, which had strengthened on the back of recovery in fiscal 2022, should sustain over the medium term, the rating agency said.

 

Affordability, after improving upto 20% between fiscals 2016 and 2021, had started declining from the second half of fiscal 2022. The headwinds now are higher capital values and interest rates, reinstatement of stamp duty, and the high-base effect of fiscal 2021, according to its report.