Demand for housing continues: After hitting a multi-year low during the peak of the COVID-19 pandemic, housing demand in India has continued to rise substantially, reaching an all-time high in the third quarter of the previous fiscal year.
According to the latest monthly report Economic survey According to data released in July by the Ministry of Economic Affairs, housing demand in the country remained robust during the quarter ended June 2024 (Q1FY25).
According to data published by PropTiger, a real estate advisory firm, cited by Economic surveyDemand for housing in eight major cities recorded a year-on-year growth of 41.8 percent.
“Home sales in eight major cities moderated sequentially in the first quarter of fiscal year 2024, registering a year-on-year growth of 41.8 percent, reflecting positive consumer sentiments on real estate investments supported by strong macroeconomic fundamentals,” the July report said. Economic survey suggested.
Strong demand for housing is also leading to an increase in steel consumption in the country amid rising imports from China. In addition to steel, the cement industry is also facing strong demand due to higher liquidity inflows in the housing sector.
“The rise in steel consumption and cement production is largely due to the continued strengthening in housing demand as housing sales increased in the first quarter of FY25 from the corresponding period of the previous year,” the survey added.
Investments in domestic cement companies have also picked up following clear directives from the government on continued infrastructure push in Bihar and Andhra Pradesh. Recently, the industry witnessed major mergers and acquisitions, with cement manufacturers shifting their attention to South India.
Despite global headwinds in steelmaking, housing demand is driving steel demand. Notably, steel prices in India have plunged to a three-year record low amid higher imports and subdued exports due to falling steel consumption in China. China’s cement industry is facing a sharp drop in demand after the government is trying to shift growth incentivized by the property sector following the fall of Evergrande.
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