India's housing market experienced a robust recovery in FY25, with a notable 33% year-on-year (YoY) increase in housing deliveries across the top nine cities. According to a report by PropEquity, the number of units delivered surged from 3,06,600 units in FY24 to 4,06,889 units in FY25. This growth highlights the strength of India's real estate sector, bolstered by government initiatives and regulatory measures aimed at streamlining construction and delivery processes.

Key Highlights of Housing Deliveries in FY25:

• 33% Increase in Housing Deliveries: The top nine cities in India delivered 4,06,889 housing units in FY25, marking a significant 33% growth compared to FY24.

• Kolkata Leads with 88% Increase: Kolkata topped the list with an 88% rise in housing deliveries, delivering 17,718 units in FY25 compared to 9,441 units in FY24. This surge reflects an increasing demand for housing in the city.

• Hyderabad and Chennai Follow Suit: Hyderabad and Chennai also witnessed impressive growth, with 61% and 49% increases in housing deliveries, respectively, showing the expansion of real estate activity in southern India.

• Delhi-NCR Reports a Decline: However, Delhi-National Capital Region (NCR) was the only city to report a decrease in housing deliveries, seeing an 8% decline from 48,388 units in FY24 to 44,423 units in FY25.

Factors Driving the Surge in Housing Deliveries:

The rise in housing deliveries can largely be attributed to the successful implementation of government initiatives such as the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund and the Real Estate (Regulation and Development) Act (RERA). These measures have accelerated project completions, ensuring timely deliveries and greater accountability from developers.

Additionally, many of the homes delivered in FY25 were originally launched in 2018-19, but their construction faced delays due to the pandemic and other challenges. The government's support has enabled developers to overcome these hurdles and deliver homes to buyers.

Regional Insights:

• Western Housing Market Dominates: The western housing market, which includes major cities like Mumbai, Navi Mumbai, Thane, and Pune, accounted for 55% of the total housing deliveries in FY25. This region remains the largest contributor to national housing growth.

• Southern Housing Market Grows Strongly: The southern market, including cities like Bengaluru, Hyderabad, and Chennai, contributed 30% of national housing deliveries, reflecting a growing demand in these cities.

Government Initiatives Boost Market Sentiment:

Initiatives like SWAMIH 2.0 are expected to continue supporting the real estate sector by funding stalled projects and promoting the delivery of affordable housing. These measures have not only helped developers but also built investor confidence in the sector.

Looking ahead, the trend of increasing housing deliveries is expected to persist, driven by continued support from the government and a strong market sentiment. As more units are completed and delivered across the country, especially in major cities, the outlook for the Indian real estate market remains positive.

In conclusion, the 33% increase in housing deliveries in FY25 signifies a major milestone in India's real estate sector, underpinned by effective government intervention and a growing demand for housing across the country's top cities. Investors and homebuyers alike can expect further growth as the housing market continues to recover and expand in the coming years.

The Upcoming IPOs in this week and coming weeks are Wagons Learning, Srigee DLM, Manoj Jewellers.

The Current active IPO are Kenrik Industries, Arunaya Organics.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.