Mumbai (Maharashtra) [India], December 26 : Strong homebuyer demand and hardening property prices coupled with the general and state elections dented India's residential growth momentum in 2024. Data compiled by real estate consultant ANAROCK indicates that housing sales in the top seven Indian cities witnessed a marginal 4 per cent decline in 2024 - approximately 459,650 units in 2024 against 476,530 units in 2023.
However, the overall sales value of housing units saw a 16 per cent yearly jump - from approximately Rs 4.88 lakh crore in 2023 to approximately Rs 5.68 lakh crore in 2024.
Data showed that the Mumbai metropolitan region witnessed the highest sales of approximately 155,335 units in 2024, registering a 1 per cent yearly rise. Pune followed with approximately 81,090 units sold. The two western markets together led residential sales in 2024.
New property launches in the top seven cities saw a 7 annual decline - from approximately 445,770 units in 2023 to approximately 412,520 units in 2024. Mumbai and Bengaluru saw the maximum new launches, together accounting for almost 50 per cent of the new supply in the year.
Anuj Puri, Chairman - ANAROCK Group, said, "2024 has been a mixed bag for the Indian housing sector. Apart from the dampening effect of general and assembly elections, project approvals slowed down markedly; this inevitably impacted new housing supply."
"While sales also saw a marginal decline when compared to 2023, this was offset by a 16 per cent jump in the overall sales value, thanks to average price appreciation and increasing unit sizes," said Anuj Puri.
On an annual basis, housing prices rose between 13-30 per cent across the top 7 cities, primarily due to increased input costs and strong homebuyer demand.
Delhi-NCR recorded the highest yearly jump of 30 per cent in average residential price - from Rs 5,800 per sq. ft. in 2023 to nearly Rs 7,550 per sq. ft. in 2024. The top 7 cities together saw a 21 per cent yearly jump in average residential price - from Rs 7,080 per sq. ft. in Q4 2023 to over Rs 8,590 per sq. ft. in Q4 2024.
Among budget categories, luxury housing demand and new supply increased exponentially in 2024 as homebuyers' demand continued the post-pandemic trend of bigger, better homes by branded developers.
The new luxury supply addition across the top 7 cities rose by 24 per cent in 2024 against 2023.
Anarock believes that there is no reason to expect luxury housing demand to taper off in 2025.
The Indian real estate sector continued to scale new highs in 2024, defying the elevated monetary policy rate of the Reserve Bank of India (RBI).
In the initial Covid years - 2020 and 2021 the real estate sector had borne the brunt as most of the outdoor activities were truncated, suppressing demand in the most crucial sector of the economy. It has come out of the troubled waters and has done relatively well in 2022, 2023, and 2024.
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