Indian Residential Real Estate Market Sees Unprecedented Growth in H1 2024
Mumbai and Hyderabad led the charge in residential launches, contributing 43% of new units, with India's residential real estate market reaching new heights in H1 2024.
Indian Real EstateResidential MarketMumbaiHyderabadJll ReportReal Estate MumbaiJul 13, 2024
The premium and luxury segments drove this growth, with the premium residential segment witnessing 170% year-on-year (Y-o-Y) growth in new launches, while the luxury segment saw a 116% increase. This shift is a result of developers adapting to the changing preferences of buyers post-pandemic, focusing on high-value projects to meet demand.
Mumbai alone accounted for 23% of the total, with 36,477 units, while Hyderabad followed with 31,005 units, representing 19%. Other notable contributors included Bengaluru with 29,153 units (18%) and Delhi NCR with 23,265 units (15%).
H1 2024 also saw the highest-ever half-yearly residential sales, with around 155,000 units sold, a 22% increase compared to the same period in 2023. Bengaluru and Mumbai were the top performers, together accounting for 45% of the total sales volume.
During the first half of 2024, the distribution of new launches varied across different ticket sizes. Projects priced between Rs 1-3 crore dominated the market, accounting for 44% of the new launches. However, the most significant growth was observed in the premium (Rs 3-5 crore) and luxury (above Rs 5 crore) segments.
Residential prices continued to climb across the top seven cities, with Y-o-Y increases ranging from 5% to 20%. Delhi NCR saw the highest price jump at 20%, followed by Bengaluru with a 15% increase.
The outlook for 2024 remains positive, with projected residential sales expected to reach 315,000 to 320,000 units. Established developers are poised to meet this demand by launching new projects in prime locations and growth corridors.
Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, remarked, 'The current year has witnessed an impressive increase in both launches and sales momentum, with approximately 54-57% of last year's total volume already achieved in just half a year.'
Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), Head - Residential Services, India, JLL, added, 'There has been a notable surge in launches within the premium segment (priced between INR 3-5 crore) and luxury segment (priced above INR 5 crore) compared to other segments.'
Frequently Asked Questions
What was the record launch of residential units in H1 2024?
Approximately 160,000 residential units.
Which cities contributed the most to new residential launches?
Mumbai and Hyderabad, collectively contributing around 43% of the overall new units.
What drove the growth in residential launches?
The premium and luxury segments drove the growth, with a 170% year-on-year (Y-o-Y) growth in new launches and a 116% increase, respectively.
What was the highest-ever half-yearly residential sales in H1 2024?
Around 155,000 units sold, a 22% increase compared to the same period in 2023.
What is the projected residential sales expectation for 2024?
315,000 to 320,000 units.
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