New Delhi, Sept. 15 -- The sharp rise in housing prices seen over the past two years is expected to moderate, according to a sectoral analysis by Nuvama Institutional Equities. The brokerage said that the Indian real estate cycle has entered its mid-stage, where buying frenzy is easing, sales velocity is slowing, and unsold inventory is inching up.

Nuvama noted that profitability of developers improved in FY25, with industry-wide cash EBITDA margins rising to 42 per cent compared with 40 per cent in FY24. Operating profits of developers were up 16 per cent year-on-year. However, the report flagged that working capital build-up has returned, reversing the improvements seen in the early part of the upcycle.

"We believe increase in house p...