Real Estate

Housing Sales Fall 4% YoY In 2024 But Sales Value Up 16% in Top-7 Cities: Report

The housing sector’s overall sales value surged by 16 per cent year-on-year, reaching Rs 5.68 lakh crore, up from Rs 4.88 lakh crore in 2023, according to the latest report by Anarock.

Housing sales across the top seven cities witnessed a 4 per cent decline, with about 4,59,650 units sold in 2024 compared to 4,76,530 units in 2023, according to a report by real estate consultancy firm Anarock. However, the sector’s overall sales value surged by 16 per cent year-on-year, reaching Rs 5.68 lakh crore, up from Rs 4.88 lakh crore in 2023.

“Strong homebuyer demand and hardening property prices coupled with the general and state elections dented India’s residential growth momentum in 2024. Housing sales in the top 7 cities witnessed a marginal 4% decline in 2024 – approx. 4,59,650 units in 2024 against 4,76,530 units in 2023,” Anarock said in a report.

However, the overall sales value of housing units saw a 16 per cent yearly jump — from about Rs 4.88 lakh crore in 2023 to nearly Rs 5.68 lakh crore in 2024, it added.

The Mumbai Metropolitan Region (MMR) led sales with about 1,55,335 units sold, a 1 per cent increase from the previous year. Pune followed with 81,090 units sold, despite a 6 per cent decline. The two western cities accounted for a significant portion of total residential sales in 2024.

Read More: Delhi-NCR leads Sept 2024 Housing Price Index with unprecedented growth

Price Surge and Demand for Bigger Homes

Average residential prices across the top seven cities rose by 21 per cent, driven by increased input costs and strong homebuyer demand. Delhi-NCR saw the steepest rise of 30 per cent, with prices jumping from INR 5,800 per sq. ft. in 2023 to INR 7,550 per sq. ft. in 2024. The average price across all cities rose from INR 7,080 per sq. ft. in Q4 2023 to INR 8,590 per sq. ft. in Q4 2024.

The demand for larger homes and branded developers continued unabated, with the luxury housing segment seeing exponential growth. New luxury housing supply across the top seven cities rose by 24 per cent in 2024, reflecting the post-pandemic trend for better homes.

Read More: A bumper year for residential real estate, but affordable housing woes may persist in 2025

New Launches and Inventory Trends

New residential launches dropped by 7 per cent, from 4,45,770 units in 2023 to 4,12,520 units in 2024, primarily due to election-related project approval delays. Despite the decline, MMR and Bengaluru accounted for nearly half of the new supply.

Notably, NCR bucked the trend with a 44 per cent increase in new launches, driven by the ultra-luxury segment priced above INR 2.5 crore. Meanwhile, Bengaluru saw a 30 per cent increase in new supply, predominantly in the mid-range segment priced between INR 40 lakh and INR 2.5 crore.

Available inventory at the end of 2024 dropped by 8 per cent, with Pune witnessing the highest decline at 20 per cent, reducing its unsold stock from 1,01,220 units to 80,670 units. In contrast, Bengaluru and Chennai saw an increase in unsold inventory.

Read More: Imposing GST on FSI Charges Could Raise Housing Prices by 10%, Impact Demand: Realty Developers

Sector Outlook for 2025

Anuj Puri, chairman of ANAROCK Group, described 2024 as a “mixed bag” for the housing sector. While elections and project approval delays slowed new supply, the rise in sales value and average prices underscored the market’s resilience.

Looking ahead, Puri anticipates stabilisation in price hikes, with steady growth driven by increased input costs and sustained demand. He also expects a robust influx of new supply in 2025 as developers address the backlog caused by election-related disruptions.

The luxury housing segment is expected to remain strong, with no signs of tapering demand. “2025 will see generous new supply infusions by listed developers who have significant inventory lined up,” Puri added.

With high homebuyer demand and strategic adjustments by developers, the residential market is poised for steady growth in the coming year.

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