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27 Aug 2024 12:57
Finance Ministry says trends in steel consumption and cement production reflect strengthening housing demand
Finance Ministry noted in its latest monthly update that the increase in steel consumption and cement production is substantially induced by continuously strengthening housing demand as housing sales increased in Q1 of FY25 over the corresponding period of the previous year. As per the data released by Prop Tiger, though housing sales in 8 major cities moderated on a sequential basis in Q1 of FY24, they registered a YoY growth of 41.8 per cent, reflecting positive consumer sentiments about real estate investments on the back of strong macroeconomic fundamentals. The nation's increasing urban population is predicted to fuel an exponential growth in demand for residential and commercial real estate. It is anticipated that the positive home-buying sentiment witnessed in the year 2023 would continue to play out even in the year 2024. The demand for real estate is expected to remain strong, driven primarily by the rising rates of urbanisation that are currently being witnessed in the country. A drop in global borrowing costs over coming months and moderating inflation will also push down interest rates from recent highs in India. This will further boost consumer sentiments and support real estate demand.
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