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Real estate developers’ focus on the premium housing segment priced between ₹3-5 crore led to launches growing by around 170% year-on-year (Y-O-Y), luxury segment priced above ₹5 crore followed with 116% growth. Mumbai and Hyderabad led the half yearly launches, collectively contributing around 43% of the overall launches, a report by JLL showed.
New supply of affordable apartments costing below ₹50 lakh declined 21% in the April-June period across seven major cities as builders launched more premium flats, according to JLL India.
As many as 1.59 lakh new housing units were launched in H1 2024 compared to 1.51 lakh units in the same period in H1 2023, indicating a 5% increase in new launches across the country, the report said.
Around 1.5 lakh housing units were sold across the country in the January to June 2024 period, the highest ever half yearly residential sales so far. Bengaluru and Mumbai together accounted for a major share of around 45% in half-yearly sales volume, a report by JLL has said.
Residential sales momentum continued to be on a high growth curve in the first half of 2024 driven by strong supply from reputed developers, favorable economic conditions, and positive buyer sentiments.
The period recorded the highest ever half yearly sales, with a 22% increase compared to the same period in 2023, totaling 1.54 lakh units. Most of the cities witnessed robust y-o-y growth in sales volume with the markets of Bengaluru, Mumbai, Pune, and NCR accounting for around 80% share in half-yearly sales, it said.
Also Read: Housing sales down 6% in April-June quarter; new supply remains flat in top 8 cities: PropTiger
Premium housing dominates
In H1 2024, premium segment ( ₹3-5 crore) launches grew by around 170% Year-on-Year (Y-O-Y), luxury segment (above ₹5 crore) followed with 116% growth. Mumbai and Hyderabad led the half yearly launches, collectively contributing around 43% of the overall launches, the report showed.
New supply of affordable apartments — costing below ₹50 lakh — declined 21% in the April-June period across seven major cities as builders launched more premium flats, according to JLL India.
Also Read: Housing sales in top 30 Tier 2 cities increase by 11% in FY2024 on the back of high demand: PropEquity
Of the total new supply in the June quarter, the launches of affordable flats stood at 13,277 units, a fall of 21% from 16,728 units in the same period last year. The launches of flats, each costing ₹50 lakh to ₹1 crore, declined 14% to 47,930 units from 55,701 units.
In the ₹1-3 crore price bracket, the new supply grew 3% to 69,312 units from 67,119 units. The launches of apartments, each priced ₹3-5 crore, more than doubled to 19,202 units from 7,149 units. Similarly, in the above ₹5 crore category, the new supply jumped more than two-fold to 9,734 units from 4,510 units, the report showed.
The cities included in the report included Mumbai city, Mumbai suburbs, Thane city, and Navi Mumbai; Delhi NCR includes Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad and Sohna.
During Q2 2024 (April-June 2024), Bengaluru, Mumbai and Delhi NCR emerged as the top cities in terms of new project launches, accounting for around 60% share.
Delhi NCR stood out with a 64% share in Q2 high-end launches (homes priced ₹3 crore and above) as several prominent developers focused on launching luxury projects in Delhi NCR, particularly in Gurugram.
Also Read: Luxury homes above ₹1 crore witness 41% growth in sales; affordable housing sales decline
The data included only apartments. Rowhouses, villas, and plotted developments were excluded from the analysis.
“This speaks about developers’ active response to the surge in demand for high value homes among the target clientele,” said Siva Krishnan, Senior Managing Director (Chennai and Coimbatore), Head – Residential Services, India, JLL.
Housing prices continue to move upwards
Q2 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 5% to 20%.
The highest price increase was observed in Delhi NCR, with a significant jump of approximately 20%, while Bengaluru followed closely with around 15% increase.
While Bengaluru has been witnessing around 15% growth Y-o-Y over the last few quarters, around 28% of its Q2 2024 new launches being sold out during the same quarter has acted as a driver for Y-o-Y price growth during the quarter. Furthermore, capital value increases at Whitefield and North Bengaluru locations have acted as a catalyst, the report said.
Why did property prices increase?
Availability of under-construction inventory in these cities getting restricted, is resulting in subsequent surge in prices. In response to the high demand for newly launched projects, developers are as well launching new phases of existing projects at elevated price levels, resulting in overall property price growth, the report showed.
“The report notes that the sales momentum has successfully complemented the new launches with around 30% of the H1 2024 sales (154,921 units) being contributed by projects that got launched during the last six months. Listed and reputed developers, consistently bringing in a substantial supply over the past few years have played a key role in this growing trend,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
