The Shifting Sands of India's Housing Market in 2024
January 1, 2025, 4:32 pm
Location: India, Maharashtra, Mumbai
Employees: 1001-5000
Founded date: 2017
Total raised: $24.1M
The Indian housing market is a dynamic beast. In 2024, it showed signs of both growth and decline, much like a rollercoaster ride. The Delhi-NCR region led the charge, with a staggering 44% increase in new housing supply. A total of 53,000 units hit the market, with a remarkable 60% of these being ultra-luxury homes priced above ₹2.5 crore. This surge paints a picture of opulence amidst a backdrop of mixed fortunes.
However, the overall landscape is not as rosy. Housing sales across the top seven cities fell by 4%, totaling approximately 4,59,650 units. This decline, though marginal, reflects a cautious sentiment among buyers. The allure of new homes is tempered by rising prices and the shadow of upcoming elections. The market is a dance of demand and supply, with each step influenced by external factors.
Anarock, a leading real estate consultant, reported that while new launches soared, sales dipped. The total number of new launches in these cities decreased by 7% from the previous year. The total stood at around 4,12,520 units, down from 4,45,770 in 2023. This contradiction is a testament to the complexities of the market.
The Mumbai Metropolitan Region (MMR) emerged as a strong player, witnessing the highest sales at approximately 1,55,335 units. This was a slight increase of 1% from the previous year. Pune followed closely, with around 81,090 units sold, despite a 6% decline. The two regions together accounted for a significant portion of the overall sales, showcasing their resilience.
Luxury housing is a phoenix rising from the ashes. Demand for high-end properties surged, reflecting a post-pandemic trend. Buyers are seeking larger, better homes, and developers are responding. The luxury segment saw a 24% increase in new supply, indicating a robust appetite for premium living spaces. MMR, Pune, Bengaluru, Hyderabad, and NCR accounted for 92% of these sales, underscoring the concentration of demand in these key markets.
Yet, the shadow of elections looms large. The general and state elections in 2024 have created uncertainty. Project approvals slowed, impacting new housing supply. This slowdown is akin to a traffic jam on a busy highway, stalling progress. The market is navigating through these challenges, trying to find its rhythm.
Price appreciation is another significant factor. The average price of residential properties in the top seven cities rose by 21% compared to 2023. This increase is a double-edged sword. While it boosts the overall sales value, it also puts pressure on buyers. The total sales value jumped from approximately ₹4.88 trillion in 2023 to around ₹5.68 trillion in 2024. This growth in value, despite a decline in volume, illustrates the market's evolving dynamics.
Bengaluru and Hyderabad also played pivotal roles in the housing landscape. Bengaluru saw a marginal rise in sales, with approximately 65,230 units sold. Meanwhile, Hyderabad recorded around 58,540 units, reflecting a 5% decline. These cities are not just players; they are key pieces on the chessboard of real estate.
Chennai and Kolkata, however, faced more significant challenges. Chennai's sales fell by 11%, while Kolkata experienced a steep 20% decline. These cities are grappling with their own set of issues, trying to regain momentum in a competitive market.
The luxury segment's growth is a beacon of hope. Buyers are increasingly drawn to branded developers who offer quality and prestige. This trend is likely to continue, as the appetite for luxury living remains strong. The market is evolving, and developers are adapting to meet these changing demands.
Looking ahead, 2025 is poised to be a year of stabilization. While the steep price hikes may not continue, steady growth is expected. Developers are gearing up for new supply infusions, ready to meet the anticipated demand. The market is like a river, constantly flowing and reshaping itself.
In conclusion, the Indian housing market in 2024 is a tapestry woven with threads of growth and decline. The surge in luxury housing contrasts sharply with the overall dip in sales. The market is navigating through uncertainties, driven by external factors like elections and rising prices. Yet, amidst these challenges, there is a glimmer of hope. The demand for quality homes remains strong, and developers are poised to meet this demand. The journey ahead is uncertain, but the resilience of the market is undeniable. The sands may shift, but the foundation of the housing sector remains steadfast.
However, the overall landscape is not as rosy. Housing sales across the top seven cities fell by 4%, totaling approximately 4,59,650 units. This decline, though marginal, reflects a cautious sentiment among buyers. The allure of new homes is tempered by rising prices and the shadow of upcoming elections. The market is a dance of demand and supply, with each step influenced by external factors.
Anarock, a leading real estate consultant, reported that while new launches soared, sales dipped. The total number of new launches in these cities decreased by 7% from the previous year. The total stood at around 4,12,520 units, down from 4,45,770 in 2023. This contradiction is a testament to the complexities of the market.
The Mumbai Metropolitan Region (MMR) emerged as a strong player, witnessing the highest sales at approximately 1,55,335 units. This was a slight increase of 1% from the previous year. Pune followed closely, with around 81,090 units sold, despite a 6% decline. The two regions together accounted for a significant portion of the overall sales, showcasing their resilience.
Luxury housing is a phoenix rising from the ashes. Demand for high-end properties surged, reflecting a post-pandemic trend. Buyers are seeking larger, better homes, and developers are responding. The luxury segment saw a 24% increase in new supply, indicating a robust appetite for premium living spaces. MMR, Pune, Bengaluru, Hyderabad, and NCR accounted for 92% of these sales, underscoring the concentration of demand in these key markets.
Yet, the shadow of elections looms large. The general and state elections in 2024 have created uncertainty. Project approvals slowed, impacting new housing supply. This slowdown is akin to a traffic jam on a busy highway, stalling progress. The market is navigating through these challenges, trying to find its rhythm.
Price appreciation is another significant factor. The average price of residential properties in the top seven cities rose by 21% compared to 2023. This increase is a double-edged sword. While it boosts the overall sales value, it also puts pressure on buyers. The total sales value jumped from approximately ₹4.88 trillion in 2023 to around ₹5.68 trillion in 2024. This growth in value, despite a decline in volume, illustrates the market's evolving dynamics.
Bengaluru and Hyderabad also played pivotal roles in the housing landscape. Bengaluru saw a marginal rise in sales, with approximately 65,230 units sold. Meanwhile, Hyderabad recorded around 58,540 units, reflecting a 5% decline. These cities are not just players; they are key pieces on the chessboard of real estate.
Chennai and Kolkata, however, faced more significant challenges. Chennai's sales fell by 11%, while Kolkata experienced a steep 20% decline. These cities are grappling with their own set of issues, trying to regain momentum in a competitive market.
The luxury segment's growth is a beacon of hope. Buyers are increasingly drawn to branded developers who offer quality and prestige. This trend is likely to continue, as the appetite for luxury living remains strong. The market is evolving, and developers are adapting to meet these changing demands.
Looking ahead, 2025 is poised to be a year of stabilization. While the steep price hikes may not continue, steady growth is expected. Developers are gearing up for new supply infusions, ready to meet the anticipated demand. The market is like a river, constantly flowing and reshaping itself.
In conclusion, the Indian housing market in 2024 is a tapestry woven with threads of growth and decline. The surge in luxury housing contrasts sharply with the overall dip in sales. The market is navigating through uncertainties, driven by external factors like elections and rising prices. Yet, amidst these challenges, there is a glimmer of hope. The demand for quality homes remains strong, and developers are poised to meet this demand. The journey ahead is uncertain, but the resilience of the market is undeniable. The sands may shift, but the foundation of the housing sector remains steadfast.