ICRA expects sales area in India’s top seven cities to grow by 13-15% in FY24 and 10-11% in FY25 on continued strong end-user demand and moderate but healthy pricing. Expect. The number of launches in 2024 will be his highest in 10 years (up 15% year-on-year) and could increase by 9-10% in 2025.
Therefore, the replacement rate for 2024 and 2025 is estimated to be slightly more than 1x. The trend among homebuyers to seek more space is expected to continue. This has changed the overall composition of the segment and increased the share of the mid-luxury segment in total sales across the top seven cities.
ICRA’s collection of sample set companies is expected to grow by 19-21% in both FY24 and FY25, supported by expected sales volume growth, higher average selling prices, and stronger project execution. in operating cash flow.
Total debt levels are likely to increase by approximately 17-19% in FY2024 and remain at similar levels in FY2025, given the increase in construction finance debt and increased land acquisition by developers for new business development. expected to remain. -up on project execution.
Nevertheless, leverage as measured by total debt/operating cash flow will remain comfortably between 1.7x and 1.75x in FY2024 and between 1.55x and 1.60x in FY2025, supported by healthy cash flows. It is expected that