Residential Realty Enters Calibrated Growth Phase: Crisil

31 Mar 2026 CW Team

In fiscal 2026, sales value growth is estimated to have slowed to 5–7 per cent as demand volumes remained largely stagnant amid elevated capital values and launch delays linked to approval challenges in some cities. In fiscal 2027, sales value growth is expected to soften further to 4–6 per cent, with both demand and average selling price growth flattening.

Average selling price growth is projected at 3–5 per cent in fiscal 2027, after an 11 per cent CAGR between fiscals 2022 and 2025 and an estimated 7–9 per cent rise in fiscal 2026. Demand growth is likely to remain flat at 0–2 per cent, although approval-related issues in Pune and the Mumbai Metropolitan Region are expected to ease. Bengaluru’s approval situation, however, remains a key monitorable.

Premium and luxury housing is expected to continue supporting demand, accounting for 38–40 per cent of total launches in fiscal 2027, up from around 12 per cent in fiscal 2022. For developers, this segment offers higher realisations and margins while strengthening collections.

Crisil Ratings expects industry collections to remain robust, supporting cash flow from operations growth of 15–17 per cent in fiscal 2027, backed by collections growth of 22–24 per cent. A study of 33 residential developers indicates that debt-to-CFO is likely to remain healthy at 1.1–1.3 times in fiscal 2027.

Inventory levels, however, are expected to rise slightly to 3.2–3.4 years in fiscal 2027 as supply continues to outpace demand. Lower-than-expected demand, aggressive launches and geopolitical uncertainties driving inflationary pressures remain key risks for the sector.

India’s residential real estate sector appears to have moved into a phase of calibrated growth after a strong post-pandemic expansion, during which sales value recorded a 26 per cent CAGR between fiscals 2022 and 2025. Despite moderating momentum, healthy collections and steady operating performance have helped developers maintain controlled debt levels and stable credit profiles.In fiscal 2026, sales value growth is estimated to have slowed to 5–7 per cent as demand volumes remained largely stagnant amid elevated capital values and launch delays linked to approval challenges in some cities. In fiscal 2027, sales value growth is expected to soften further to 4–6 per cent, with both demand and average selling price growth flattening.Average selling price growth is projected at 3–5 per cent in fiscal 2027, after an 11 per cent CAGR between fiscals 2022 and 2025 and an estimated 7–9 per cent rise in fiscal 2026. Demand growth is likely to remain flat at 0–2 per cent, although approval-related issues in Pune and the Mumbai Metropolitan Region are expected to ease. Bengaluru’s approval situation, however, remains a key monitorable.Premium and luxury housing is expected to continue supporting demand, accounting for 38–40 per cent of total launches in fiscal 2027, up from around 12 per cent in fiscal 2022. For developers, this segment offers higher realisations and margins while strengthening collections.Crisil Ratings expects industry collections to remain robust, supporting cash flow from operations growth of 15–17 per cent in fiscal 2027, backed by collections growth of 22–24 per cent. A study of 33 residential developers indicates that debt-to-CFO is likely to remain healthy at 1.1–1.3 times in fiscal 2027.Inventory levels, however, are expected to rise slightly to 3.2–3.4 years in fiscal 2027 as supply continues to outpace demand. Lower-than-expected demand, aggressive launches and geopolitical uncertainties driving inflationary pressures remain key risks for the sector.

Products

20 Apr 2026

OrnaMatte Brings Premium Matte Finishes to Modern Interiors

Action TESA has introduced OrnaMatte, a curated range of 38 matte finishes designed for contemporary interior surfaces. The new offering combines premium aesthetics with practical performance, reflecting the growing demand for surface solutions that balance design appeal with durability. The company said matte finishes continue to gain popularity for their understated, elegant look across modern interiors. OrnaMatte features anti-fingerprint properties, a velvety satin feel, near-zero gloss and 3H scratch resistance, making it suitable for long-term use in residential and commercial spaces. ..

Real Estate

20 Apr 2026

Vestian reports 36% drop in construction activity in Q1

Vestian reported a 36 per cent quarter-on-quarter decline in new office completions to 9.7 million sq ft in Q1 2026, marking the lowest level in the past four quarters amid the West Asia crisis.The slowdown was led by cities such as Bengaluru, Hyderabad and Mumbai, where developers adopted a cautious approach. Hyderabad saw the steepest drop, with completions falling 95 per cent to 0.3 million sq ft from 6.0 million sq ft in the previous quarter.Despite constrained supply, office absorption rose 20 per cent year-on-year to 21.53 million sq ft, driven by sustained demand from global capability ..

Real Estate

20 Apr 2026

fäm Properties reports 95% sales in Dubai 2026 supply

Data from DXBinteract shows that 41,015 of 43,217 units due this year have already been sold. Across the 2026–2029 pipeline, 71.45 per cent of 426,182 units have been committed, indicating sustained absorption levels.The analysis highlights strong demand across leading developers, with several reporting near or full sell-outs. Emaar and Meraas have sold over 99 per cent of their 2026 inventory, while Dubai Holding and Meydan projects are fully sold.Commenting on the trend, Firas Al Msaddi, CEO, fam Properties, said, “Dubai continues to demonstrate a level of forward demand that is structur..