India's Housing Market Sees Unprecedented Growth in 2024
Residential property sales in India reach an 11-year high in H1 2024, with premium housing sales rising to 34% market share.
Indian Real EstateHousing MarketPremium HousingAffordable HousingMarket TrendsReal Estate NewsJul 05, 2024
Mumbai led the way with 47,259 units sold, a 16% year-on-year growth, followed by Kolkata, which saw a remarkable 25% growth in home sales. Ahmedabad also witnessed a significant 17% year-on-year increase.
The surge in sales has been complemented by a surge in development activities, with the launch of 1,83,401 units in H1 2024, a decade-high in half-yearly launches. Mumbai led in new launches with 46,985 units, followed by Kolkata, which saw a remarkable 60% growth in new launches, and Pune with a robust 32% increase.
The report highlights a shift towards premium housing segments, with the premium category now commanding 34% of the market, up from 15% in H1 2018. This shift is mirrored in both demand and supply, with a notable increase in launches of properties priced above Rs 1 crore.
However, the affordable housing segment saw a decline in sales in H1 2024, with properties priced below Rs 50 lakh falling from 32% in H1 2023 to 27% in H1 2024. The mid-segment of India's real estate market, encompassing properties priced between Rs 50 lakh to Rs crore, saw a decline in market share from 38% in the first half of 2023 to 32% in H1 2024.
The higher end of the market, comprising residential units priced over Rs 1 crore and above, has witnessed significant growth, with the luxury real estate market now commanding a substantial 41% share of total sales across the eight major markets covered.
Inventory and market health during the January-June period of 2024 saw a 3% year-on-year increase in unsold inventory levels, particularly in the premium segment, which saw a 27% rise. However, metrics like the Quarters to Sell (QTS) indicate improving market health, with the overall QTS falling to 5.9 quarters in H1 2024 from 9.5 quarters in H1 2021.
Looking ahead, experts anticipate sustained market momentum supported by stable economic conditions and continued growth in premium housing preferences. The focus remains on addressing challenges in the lower price categories to ensure more inclusive market growth.
Information
Knight Frank is a leading international property consultancy, providing a comprehensive range of services across the residential, commercial, and agricultural sectors. With over 18,000 people operating from over 500 offices across 60 countries, Knight Frank is one of the largest and most respected property consultancies in the world.
Knight Frank India is a subsidiary of Knight Frank, providing expert advisory services across the Indian real estate market. With a strong presence in major cities across India, Knight Frank India offers a comprehensive range of services, including residential and commercial sales, leasing, valuation, and research.
Frequently Asked Questions
What was the total number of units sold in H1 2024?
1.73 lakh units
Which city led in terms of sales volume nationwide?
Mumbai
What is the current market share of the premium category?
34%
What is the projected growth for the Indian real estate market in the next half of 2024?
Sustained market momentum supported by stable economic conditions and continued growth in premium housing preferences
What is the primary driver of overall sales growth in H1 2024?
The luxury real estate market
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