Impact of Realty Slowdown on Building Materials Sector

Abnormally high home prices have weakened residential demand over the last two quarters, with a significant 23% decline in housing sales during January-March quarter of 2025. This, along with the slowdown in infrastructure development, is casting a shadow on the building material sector.
Vinod Behl

In FY25, India's infrastructure sector experienced a slowdown in growth with the index of 8 core industries growing by 3.8% in March 2025 compared to 6.3% in March 2024.There has been 7-10% slowdown in highway construction with daily construction dropping to 31 kms in FY25, from 34 kms in FY 24. The cumulative awarding of the national highways was also low in FY25, compared to FY24.