New Delhi [India], India Ratings and Research (Ind-Ra) has maintained a neutral outlook for the residential real estate sector for financial year 2024-25. Absorption and prices in residential real estate are likely to be supported by affordability and stability. Interest rates, the rating agency said, however, given the high base of the recently concluded financial year 2023-24, growth rates are likely to be lower. Residential real estate market recorded strong performance in the first three quarters of 2023-24 While sales growth for the top eight real estate groups has exceeded 25 per cent year-on-year, despite a sticky interest rates, most sectors are seeing price growth, Ind-Ra expects. That pre-sale growth will moderate to 8 percent. Director, Mahavir Shankarlal Jain said, “Inventory levels have also increased by 10 per cent year-on-year in the current financial year in the premium and luxury segments through FY2024 due to sharp growth in sales and realizations due to the launch of There has been an increase." Corporate Ratings, Ind-Ra Moreover, Ind-Ra expects prices to be 22 per cent higher year-on-year at the end of 2023-24 and about 5 per cent lower due to base for 2024-25.impact and a large number of new launches are planned. Ind-Ra expects the mid-income and upper-middle-income segment, which emerged as the leading consumer segment in 2023-24, to continue to have a strong buying interest, while the premium and luxury segment will see sharp demand in 2023-24. An increase was observed. -Ra is expected to cool down due to higher base as the level of unsold inventories remains high and is the highest in the last five years, with tier II and III cities reporting significant growth, driven by fresh fundamentals The government is focused on developing infrastructure and improving connectivity in new cities. With mega projects like highways, airports, metros, digitalisation is likely to boost the development and substantial growth of Tier II and III cities. While the relatively new markets of Thiruvananthapuram, Guwahati, Rajkot, Ranchi are witnessing rapid housing growth, outer Mumbai, Surat Vadodara, Jaipur, Nashik, Chandigarh and Bhopal make up more than 60 per cent of the market in terms of units sold. .CAGR growth of 14 percent during 2021-2023.