Housing Sales Surge 17% in Jan-Sep 2024, Leading Cities Dominate Market
Bengaluru and Mumbai lead the housing sales, contributing 44% of the total units sold in the January-September period of 2024. The luxury and premium segments witness significant growth amid changing buyer preferences.
Housing SalesLuxury PropertiesReal EstateBengaluruMumbaiReal Estate MumbaiOct 13, 2024
Around 2.28 lakh units were launched during the first nine months of 2024, the highest ever residential supply recorded during this period, achieving 78% of the total annual launches in 2023. Mumbai, Bengaluru, and Hyderabad together accounted for about 60% of the overall launches during this period.
In the nine-month period, the mid-segment (₹50 lakh-1 crore) and upper-mid segment (₹1-3 crore) held significant shares, with 39% and 35% respectively. However, the premium and luxury segments saw substantial growth, driven by changing lifestyle preferences and increased disposable income.
The outlook for residential sales in 2024 remains positive, with the first nine months achieving around 85% of the total sales recorded in 2023. The year is expected to close with sales reaching a historic milestone, 12-15% higher than the 2.94 lakh units sold in 2023, bolstered by the festive season's buyer activities. Reputed developers are expected to drive demand with quality supply in prime locations and growth corridors.
A total of 74,987 units were sold during Q3 2024, a moderate 8% growth compared to the same quarter last year. Mumbai, Bengaluru, and Delhi NCR accounted for around 62% of the quarterly sales, with a notable 15% of the homes sold falling in the ₹3 crore and above range.
Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, stated, 'Residential sales during the first nine months of 2024, achieving 85% of the volume recorded during the entire year 2023, speak largely about the robust sales traction across the top 7 cities. 23% of the overall 9-month sales were recorded in projects launched during January-December, indicating a strong revival of buyer confidence in early-stage projects.'
Siva Krishnan, Senior Managing Director (Chennai & Coimbatore) and Head - Residential Services, India, JLL, added, 'There has been a notable surge in demand for the premium segment (₹3-5 crore) and luxury segment (above ₹5 crore) compared to other segments during the first nine months of 2024, driven by rising disposable income and a preference for larger homes.'
Residential prices continued to grow in Q3 2024 in the top seven cities, with a Y-O-Y increase ranging from 3% to 20%. Delhi NCR saw the highest price increase at 19%, followed by Bengaluru with a 14% rise. Housing demand has been on the rise since Q2 2022, post-pandemic, and prices are expected to move steadily with ongoing quality launches.
Residential launches in the first nine months of 2024 kept pace with sales, reaching around 78% of the total annual launches in 2023. The launches of premium category projects (₹3-5 crore) grew by 112% Y-O-Y, and the luxury segment by 128%. As of Q3 2024, unsold inventory across the seven cities decreased marginally on a Y-O-Y basis, with the months to sell declining from 28 months in Q3 2023 to 22 months in Q3 2024.
Frequently Asked Questions
What was the total number of housing units sold in the first nine months of 2024?
A total of 2.29 lakh housing units were sold in the January-September period of 2024.
Which cities contributed the most to the housing sales in the first nine months of 2024?
Bengaluru and Mumbai contributed around 44% of the total housing sales in the first nine months of 2024.
What was the growth in demand for luxury and premium housing segments in the first nine months of 2024?
The demand for the premium segment (₹3-5 crore) grew by around 107% Y-O-Y, and the luxury segment (above ₹5 crore) grew by 96% Y-O-Y in the first nine months of 2024.
How many housing units were launched in the first nine months of 2024?
Around 2.28 lakh housing units were launched in the first nine months of 2024, achieving 78% of the total annual launches in 2023.
What is the expected growth in housing sales by the end of 2024?
2024 is expected to close with sales reaching 12-15% higher than the 2.94 lakh units sold in 2023, based on the strong buyer activities during the festive season.
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