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As many as 2.29 lakh housing units were sold during the January-September period of 2024 which was a growth of 17% compared to the same period last year. Bengaluru and Mumbai lead January-September sales contributing around 44% of the overall sales even as luxury and premium housing sales witnessed maximum demand, a report by JLL showed.
Around 2.28 lakh units were launched during Jan-Sep 2024, highest ever residential supply recorded during the first nine months of the year; achieving 78% of 2023 total launches. Mumbai, Bengaluru, and Hyderabad together accounted for a major share of around 60% in overall launches during the first nine-month period, it said.
During the first nine months of 2024, demand for the premium segment ( โน3-5 crore) grew by around 107% Year-on-Year (Y-O-Y), the luxury segment (above โน5 crore) followed with around 96% growth, the report said.
Also Read: Housing sales decline by 11% YoY across top seven cities in Q3 2024; Mumbai, Bengaluru lead supply
In the nine-month period of 2024, around 39% of the residential sales were in the mid segment ( โน50 lakh-1 crore), closely followed by upper-mid segment ( โน1-3 crore) holding a 35% share. However, there has been a significant growth in the premium and luxury segment sales compared to the same period in 2023. With change in lifestyle preferences of buyers, there has been a noticeable increase in the demand for high-value projects, especially after the pandemic, the report showed.
Going forward housing sales to touch 12-15% higher than 2023
Despite a short-term slowdown in sales during the quarter, the outlook for residential sales in 2024 remains healthy, with the first nine months of 2024 achieving around 85% of entire 2023 sales. 2024 is expected to close with sales reaching yet another historic milestone, 12-15% higher than 2023 sales of 2.94 lakh units, based on strengthening of buyersโ activities over the upcoming festive season, the report showed.
Additionally, quality supply inflow by reputed developers is expected to drive the demand further. Announcement of projects by reputed national and local developers in prime locations and growth corridors in the near to medium term will sustain an upward growth in sales volume.
A total of 74,987 units were sold during Q3 2024, a moderate growth of 8% when compared to the same period last year. Mumbai, Bengaluru, and Delhi NCR accounted for around 62% share in quarterly sales. Demand for luxury homes continued to grow, during the quarter with 15% of the total homes sold being in โน3 crore and above range.
Also Read: Housing transactions in Mumbai rise 7% YoY during July-September, festive offers to help boost demand: Report
โResidential sales during the first nine months of 2024, achieving 85% of the volume recorded during the entire year 2023, speak largely about the robust sales traction across top 7 cities. 23% of the overall 9-month sales (229,908 units) were recorded in projects that got launched during January-December. This indicates strong revival of buyer confidence in projects even in their early stages.โ said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
โThere has been a notable surge in demand for the premium segment (priced between โน3-5 crore) and luxury segment (priced above โน5 crore) compared to other segments during the nine months of 2024 compared to the same period of 2023. Robust increase in share of sales in the โน3 crore and above price range during the first nine months of 2024, as compared to same period in 2023 has been driven by rising disposable income and preference for bigger homes,โ said Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), Head – Residential Services, India, JLL.
Highest price increase observed in Delhi NCR
Q3 2024 continued to witness residential price growth in the top seven cities (Delhi NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune, Kolkata) of India, with Y-O-Y price increase ranging from around 3% to 20%.
The highest price increase was observed in Delhi NCR, with a significant hike of approximately 19%, while Bengaluru followed closely with around 14% increase.ย
With housing demand on an upward trajectory, capital values have been on the rise since Q2 2022, post the pandemic. Driven by quality launches on the way, prices are expected to move steadily going forward.
Residential launches during Jan-Sep 2024 kept pace with the sales, reaching around 78% of total annual launches in 2023, indicating quality supply addition, the report showed.
Also Read: Real estate market trends: Are luxury housing sales sustainable in the long run?
Over 2.28 lakh housing units were launched in the Jan-Sep 2024 period, achieving 78% of the last yearโs total launches which stood at 2.94 lakh units. On a yearly basis, nine-month launches across the top 7 cities have risen marginally by 2%. Mumbai, Bengaluru, and Hyderabad contributed 60% of the total launches in this period. Like sales, quarterly launches saw a 14% q-o-q decline with 68,874 housing units getting launched during Q3, it showed.
In line with the trend observed in sales, in the first nine months of 2024, the launches of premium category projects (priced between โน3-5 crore) saw a y-o-y growth of around 112%. Similarly, the luxury segment (priced above โน5 crore) also experienced a significant sales increase of 128% compared to the same period in the previous year.
As of Q3 2024, unsold inventory across the seven cities decreased marginally on a Y-o-Y basis as launches outpaced sales. However, it is interesting to note that months to sell has declined Y-o-Y from 28 months in Q3 2023 to 22 months in Q3 2024, it added.
