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Housing sales rose 7% annually in 2024 across eight major cities to reach a 12-year high on better demand for premium homes amid stable mortgage rates and strong economic growth, according to a report by Knight Frank on January 7.
The total number of sales increased from 329,097 units in 2023 to touch 350,613 units in 2024 across the top eight cities.
Mumbai recorded the highest volume of sales of 96,470 units, up by 4% from 96,187 units in 2023. Bengaluru saw a marginal growth of 2% YoY with 55,362 units sold at a 10-year high. However, sales in the NCR region dropped by 4% to 57,654 units.
Hyderabad sold 36,974 units and Pune recorded a sales of 52,346 units reaching all-time highs.
Kolkata recorded the highest sales growth, with 18,462 units, up 16%, followed by Ahmedabad (with 17,389 units), which experienced 15% YoY growth.
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Shishir Baijal, chairman and managing director of Knight Frank India, said the premiumisation trend has intensified as the market continues to shift toward higher ticket sizes with products much better suited to the increasing lifestyle needs of the demanding consumer.
The top eight cities include Bengaluru, Kolkata, Mumbai, NCR, Hyderabad, Chennai, and Ahmedabad.
Why sales in NCR saw a dip in 2024?
Experts say that customer trust in the gap between promise and delivery and project pricing played a huge role in this.
“Two years ago, โน40-50 lakh product was a burden for consumers, and now โน1-1.5 crore worth of houses are also burdened in markets like NCR where a lot of inventory has moved beyond this price range. Particularly up to the โน1.5 crore segment, we saw a decline in sales,” Vivek Rathi, head of research at Knight Frank, told HT.com.
For example, the report highlighted that NCR saw a 717% YoY growth in sales in over โน50 crore segment to 49 units in 2024. In โน10-20 crore, NCR saw 44% growth in sales to 397 units, the highest among the top eight cities.
Similarly, in the โน5-10 crore ticket segment, NCR recorded 35% growth in sales to 7361 units, also the highest among the top 8 cities.
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The report added that while units priced in the โน1-2 crore range constitute 27% of total sales, growing by a healthy 15% YoY, the โน2-5 crore range shows the most growth at 62% YoY. Its share has grown from 10% in H2 2023 to 15% in H2 2024. “In fact, sales have grown in all higher ticket sizes except the ultra-luxurious segment priced over โนcrore.
The โน50 lakh-1 crore witnessed the highest traction with residential sales of 1,08,363 units in the country. The segment constituted 31% of the overall residential sales volume across eight markets in the country. Pune emerged as the largest market for this segment with sales of 23,798 units in 2024.
About 26% of sales volume was attributed to the ticket size of โน1-2 crore in 2024, recording residential sales of 90,814 units. Bengaluru accounted for 45% of this segmentโs sales with 19, 144 units in 2024.
The โน2-5 crore segment witnessed its sales volumes expanding from 27,149 units in 2023 to 49,398 units in 2024, registering a growth of 82% YoY. The segment has attributed 14% of the overall sales volume across eight markets. NCR accounted for 38% or 18,997 of the units sold in this segment in 2024.
The sale volume in the โน10-20 crore segment increased by 53% from 811 units in 2023 to 1,240 units in 2024. NCR (397 units), Mumbai (360 units), and Hyderabad (314 units) were the leading residential markets in the segment.
The โน20-50 crore segment grew substantially by 85%, the highest for any segment. This segment recorded sales of 245 units in 2024, up from 133 units in 2023. Nearly 78% of the sales in this segment were contributed by the Mumbai residential market, which had a sales volume of 192 units.
Bengaluru witnessed maximum appreciation in residential prices
Bengaluru recorded the highest residential price increase in 2024, with average prices seeing a 12% YoY, followed by Hyderabad and Chennai at 8% and 7%, respectively. Mumbai, meanwhile, recorded its highest price per sq ft in the past 12 years, reaching โน8,277.
“However, the price rise has been strongly mitigated by the stability in home loan rates, rising household incomes in urban areas and rising economic fundamentals of the country, which is pursuing homebuyers to make their purchase. Another significant aspect contributing to the rise in average prices in cities is the premiumisation trend, which is why more units are launched in higher price categories, automatically boosting the price threshold of the city,” the report added.
