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The agency expects residential prices to rise 6-10 per cent this fiscal and a further 3-5 per cent in the next across the top six cities due to the steep increase in raw material, labour and land costs. This, however, has not impacted demand for residences adversely, given a strong preference for larger homes as the hybrid working model continues in many sectors, it added.
The top six realty markets are the Mumbai Metropolitan Region (MMR), the National Capital Region (NCR), Bengaluru, Pune, Hyderabad, and Kolkata. The companies covered by the report are Brigade Enterprises, DLF, Godrej Properties, Kolte-Patil Developers, Macrotech Developers, Mahindra Lifespace Developers, Oberoi Realty, Prestige Estates Projects, Puravankara, Sobha and Sunteck Realty.
The report said these realtors reported sales of Rs 31,000 crore in the first half of this fiscal, which is equal to their entire FY2020 haul, and should close this fiscal at Rs 65,000 crore, up a whopping 110 per cent from the pre-pandemic level. According to Gautam Shahi, a director with Crisil, large developers will likely account for 40-45 percent of new launches this fiscal as against under 30 per cent before the pandemic. This will mean an increase in their market share to 24 per cent this fiscal and 25 per cent by FY2024, as against 14 per cent before the pandemic. Inventory levels in the top six cities have corrected to a comfortable 2.5 years on average, as against four years before the pandemic because of fewer launches in the past two years and faster sales momentum.
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This, along with strong sales momentum, will improve their debt to assets ratio significantly to 23 per cent by March 2023 and further to 21 per cent by March 2024, from 42 per cent at the start of the pandemic.