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The financial year FY25 marked a significant achievement for India's real estate sector, with over 4 lakh homes delivered in the top nine cities. This 33% year-on-year (Y-o-Y) increase highlights the combined impact of government initiatives, regulatory pressures, and improving market conditions. However, the Delhi-NCR market stood out as an exception, witnessing a decline in home deliveries during the same period.
Government Initiatives Fuel Growth in Home Deliveries
According to a report by NSE-listed data analytics firm PropEquity, 4,06,889 homes were delivered in FY25, compared to 3,06,600 in FY24. This growth can be attributed to government-backed measures such as the SWAMIH (Special Window for Affordable and Mid-Income Housing) Fund, which is aimed at expediting stalled projects, and heightened enforcement of RERA regulations that compel developers to adhere to project deadlines. These factors have collectively enhanced trust and efficiency within the real estate sector.
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Regional Performance: A Mixed Bag
The performance across the top nine cities revealed a mixed trend. While most cities reported substantial growth, Delhi-NCR recorded an 8% decline in home deliveries. Here's a closer look:
- Kolkata: Led the growth chart with an 88% Y-o-Y increase, delivering 17,718 units in FY25 compared to 9,441 units in FY24.
- Hyderabad: Achieved a 61% rise in deliveries.
- Chennai: Reported a 49% growth.
- Mumbai: Recorded the most modest growth at 22%.
In contrast, Delhi-NCR delivered 44,423 units in FY25, down from 48,388 in FY24, reflecting a significant decline.
Western and Southern India Dominate the Market
Western India, comprising cities like Mumbai, Navi Mumbai, Thane, and Pune, emerged as the frontrunner, accounting for 55% of the total homes delivered in FY25. This marks an increase from 53% in FY24. Southern India, including Bengaluru, Chennai, and Hyderabad, followed with a 30% share, up from 28% in FY24. Kolkata's share rose from 4% to 3%, while Delhi-NCR's share declined from 16% in FY24 to 11% in FY25.
Key Drivers Behind the Surge
Several factors contributed to the surge in home deliveries across the top nine cities in FY25:
- Completion of Projects Launched Pre-Pandemic: Many homes launched in 2018-19 faced construction delays due to the pandemic but have since reached completion.
- SWAMIH Fund: The initiative has expedited stalled projects and encouraged developers to adhere to strict timelines.
- RERA Compliance: Regulatory pressures have compelled developers to meet deadlines, enhancing delivery rates.
- Positive Market Sentiments: Strong cash flows and an increasing share of reputed developers have accelerated project executions.
Delhi-NCR: An Outlier
While most cities enjoyed growth, Delhi-NCR reported a downturn, declining home deliveries by 8%. Factors contributing to this decline may include the region's lingering project delays and regulatory challenges.
Also Read: CCI Group to Develop 9.5 Lakh Sq Ft Warehousing Facility in Gurugram
Industry Insights and Future Outlook
Samir Jasuja, founder and CEO of PropEquity, highlighted the evolving dynamics of India's real estate market. "The surge in home deliveries in FY25 is a result of multiple factors, including improved compliance and government support through initiatives like SWAMIH. Looking ahead, SWAMIH 2.0 is expected to play a pivotal role in expediting the delivery of stalled projects," he noted.
The trend of increasing deliveries will continue as reputed developers further consolidate their market share, ensuring timely completions and boosting buyer confidence.
Conclusion
The delivery of over 4 lakh homes in the top nine cities in FY25 underscores the resilience and progress of India's real estate sector. With government initiatives and regulatory frameworks driving this growth, the market appears poised for sustained expansion. However, addressing regional disparities, such as the decline in Delhi-NCR, will be crucial for achieving balanced development across the country. The performance of "homes delivered in top nine cities in FY25" is a benchmark for the industry's evolving dynamics, paving the way for future developments.
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Ans 1. A total of 4,06,889 homes were delivered in FY25, marking a 33% year-on-year (Y-o-Y) increase compared to FY24.
Ans 2. Completion of pre-pandemic projects.Government initiatives like the SWAMIH Fund.Enhanced RERA compliance.Positive market sentiments and improved cash flows.
Ans 3. Kolkata led with an 88% Y-o-Y increase, delivering 17,718 units in FY25 compared to 9,441 units in FY24.
Ans 4. Delhi-NCR recorded an 8% decline in home deliveries, with 44,423 units delivered compared to 48,388 in FY24.
Ans 5. Western India accounted for 55% of the total home deliveries, followed by Southern India with 30%.
Ans 6. The SWAMIH Fund is a government initiative to expedite stalled affordable and mid-income housing projects. It has significantly improved completion rates and boosted buyer confidence.
Ans 7. RERA ensures developers adhere to project timelines, enhancing trust, efficiency, and delivery rates in the real estate market.
Ans 8. The region's decline in home deliveries may be attributed to lingering project delays, regulatory challenges, and inefficiencies.