CRISIL told the media that even though the market is improving in 2021-22, a complete recovery in the residential realty sector is expected only in 2024. The nation's housing market is supposed to increase by 5-10% in the current FY, as per CRISIL. It noted that increased affordability and continuing work-from-home would grow demand for residences in the top six cities of India this fiscal. However, Mumbai and Pune could see the market contracting due to the higher base of last fiscal, while the rest should see a rebound. CRISIL cited that demand will align with pre-pandemic levels only after the 2023 fiscal. In FY22, while the housing demand overall may continue to be subdued because of the second wave of Covid, market opinions are expected to improve steadily, following with the recovery last year, from October onwards. Moreover, the ongoing pandemic and its economic drop will help big developers to get better faster now, leading towards consolidation in the real estate market. The rating company said that the developers with managed balance sheets would develop faster than the industry, strengthen their presence, and maintain their credit profiles. Unexpectedly, since FY17, the number of listed realty members has increased from 6% to 22% by the end of FY22 in the housing market. Isha Chaudhary, director at CRISIL Research, told the media that demand in Hyderabad, Bangalore, and Kolkata is estimated to rise 40-45% this FY after plunging 25-45% last fiscal, driven by better affordability and a lower base. CRISIL told the media that between 2016 and 2021, real estate players have raised nearly Rs 44,000 crore through equity and land and commercial assets monetisation. Moreover, the company said that the enhanced financials would be useful to tackle pressure from the second covid wave and reach growth requirements and keep their credit profiles stable. Currently, its estimates suggest a slowdown in new launches in this fiscal year as developers will centre on the sale of ready or almost complete properties, leading to a gradual decrease in inventory. Image Source Also read: Home sales plunge in April-May due to second wave of Covid-19 Also read: Rising steel, cement prices to impact real estate