Residential Real Estate Soars in Mumbai and Hyderabad
India's residential real estate market reaches new heights, with Mumbai and Hyderabad leading the charge in new launches and sales.
Real EstatePropertyMumbaiHyderabadResidential MarketReal Estate MumbaiJul 13, 2024
The premium residential segment, priced between Rs 3-5 crore, witnessed a staggering 170% year-on-year (Y-o-Y) growth in new launches, while the luxury segment, with properties priced above Rs 5 crore, 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 and Hyderabad led the charge in residential launches, collectively contributing around 43% of the overall new units. 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. Bengaluru sold 35,543 units (23%), while Mumbai sold 33,744 units (22%).
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, which grew by 169% and 116% Y-o-Y, respectively.
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 high demand for new projects and limited under-construction inventory have driven this price growth.
Looking ahead, 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.
The trend of high-value projects is likely to continue, driven by favourable economic conditions and positive buyer sentiment. Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, remarked,
Frequently Asked Questions
What is the current trend in India's residential real estate market?
The current trend is a significant rise in the premium and luxury segments, with a focus on high-value projects to meet demand.
Which cities led the charge in residential launches in H1 2024?
Mumbai and Hyderabad led the charge, collectively contributing around 43% of the overall new units.
What is the projected residential sales for 2024?
The projected residential sales for 2024 is expected to reach 315,000 to 320,000 units.
What is driving the growth in residential prices?
The high demand for new projects and limited under-construction inventory have driven this price growth.
What is the outlook for the residential market in 2024?
The outlook for 2024 remains positive, with established developers poised to meet demand by launching new projects in prime locations and growth corridors.
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