India's Housing Market Set for Record-Breaking Year in 2024
India's housing market is witnessing a significant boom, with 2024 projected to be the best year ever. Over 300,000 homes worth ₹510,000 crore are expected to be sold across the top seven cities.
Indian Housing MarketReal EstateJll IndiaProperty SalesUrbanizationReal Estate NewsDec 04, 2024
Housing sales have remained robust, reaching a new peak during the January-September period of 2024. Nearly 230,000 homes across the top seven cities, valued at ₹380,000 crore, have already been sold. This translates to 363.2 million sq ft of space sold in the first nine months, indicating a robust outlook for the next year.
Siva Krishnan, Senior MD (Chennai & Coimbatore) and Head of Residential Services at JLL India, stated, “During the year, real estate developers have continued to acquire strategic land parcels across the metro cities for proposed residential development. Thus, the housing supply for 2025 across the top seven cities is expected to remain robust. Demand is expected to remain strong too. With sales anticipated to go up, capital values too will rise, eventually pulling up the area and overall value of homes to be sold.”
The first three quarters of 2024 saw sales of over ₹110,000 crore each, with over 115 million sq ft sold in every quarter. This growth is driven by increased consumer confidence and growing investments from institutional and foreign investors. Niranjan Hiranandani, Chairman of NAREDCO, emphasized that the real estate sector’s positive trajectory is driven by factors such as improved infrastructure, rising disposable incomes, stable interest rates, and government initiatives like ‘Housing for All’. He added, “As the industry continues to evolve with greenfield and brownfield developments, we are optimistic about its potential to contribute significantly to India’s economic growth and development.”
Hiranandani also noted that the surge in retail home loan exposure by banks underscores the strong home ownership sentiment amongst homebuyers. Work-from-office models and redevelopment are driving growth in the rental housing segment.
Samantak Das, Chief Economist and Head of Research and REIS at JLL India, stated, “With capital values surging and being at an all-time high, close to ₹380,000 crore worth of homes have already been sold across the top seven cities in the first 9 months of 2024, taking the average sale value of an apartment to ₹1.64 crore. This was primarily driven by premium housing projects recording robust sales during the year, especially in Delhi-NCR.”
In the first nine months of the year, Delhi-NCR led in both sales value and area sold, driven by strong demand for larger, premium homes. The region saw nearly 90 million sq ft of space sold, valued at over ₹120,000 crore across 39,322 units, surpassing last year’s total sales. In terms of the value of homes sold, Mumbai followed NCR, while in terms of area sold, Bengaluru stood second. This indicates that while apartments are smaller in Mumbai, the per sq ft realization is significantly higher, while Bengaluru offers more spacious homes.
With the festive season coinciding with the fourth quarter and housing demand expected to remain strong, sales during the December quarter may potentially match or exceed the trailing three-quarter average of over 75,000 units, taking the full year sales to 305,000 units.
Frequently Asked Questions
What is the expected performance of India's housing market in 2024?
India's housing market is expected to have its best year in 2024, with over 300,000 homes worth ₹510,000 crore expected to be sold across the top seven cities.
Which cities are leading the housing market growth in 2024?
The top cities leading the housing market growth in 2024 are Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata.
What factors are driving the growth in India's housing market?
The growth in India's housing market is driven by steady economic growth, infrastructure improvements, increased urbanization, consumer confidence, and government initiatives like ‘Housing for All’.
What is the expected sales performance for the fourth quarter of 2024?
Sales during the December quarter may match or exceed the trailing three-quarter average of over 75,000 units, taking the full year sales to 305,000 units.
How is the demand for larger, premium homes in Delhi-NCR affecting the market?
Delhi-NCR is leading in both sales value and area sold, driven by strong demand for larger, premium homes, with nearly 90 million sq ft of space sold, valued at over ₹120,000 crore across 39,322 units.
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