Blueprints on Hold, Boom on Horizon: Realty Launches Set to Soar Despite Approval Gridlock

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Market Pulse India's real estate market will see a strong revival, and fresh launches of projects are expected to increase at a compound annual growth rate (CAGR) of 12 percent over FY25-27. The revival comes after a short-term slowdown owing to regulatory issues and policy vagueness that delayed a number of FY25 launches.

Momentum Drivers

FY26 is expected to be a inflection point year, taking on postponed FY25 launches and establishing a strong, back-loaded pipeline.

Presales are expected to grow at 21 percent CAGR, while collections are expected to grow 36 percent to Rs 1.5 lakh crore by FY27.

Revenues of top developers are predicted to increase at a 22 percent CAGR to Rs 86,100 crore, led by timely completion and strong business generation.

Sector Overview

FY25 began on a positive note but lost steam in the latter half due to state and central elections, delay in the regulation process, and unavailability of the key decision-making platforms.

Launches dropped 5 percent year-on-year, while domestic absorption dropped 10 percent.

Q4 FY25 was soft, with falls of 11 percent in launches and 17 percent in absorption in the top seven cities.

Emerging Trends

For the first time in five years, inventory levels were in check, rising only to 14.4 months as of FY25 end.

Despite this, absorption still led new supply, reflecting underlying strength in demand.

Concentration of the market is accelerating: the top 10 developers now have 31.9 percent of the launches and 23.1 percent of absorption compared to 22.7 percent and 19 percent in FY15 respectively. Outlook The fundamentals of the sector are sound, and the industry majors are poised to benefit from the next wave of launches. As regulatory challenges ease and implementation speeds up, the next couple of years could be a watershed moment for India's real estate world.

Sources: Motilal Oswal, ANI, The Tribune, Devdiscourse, WebIndia123