Mumbai, Jan 16: Residential property sales during 2024 witnessed sustained growth reaching a record-high volume of 3,02,867 units, which represents an 11 per cent growth year-on-year and the momentum is expected to continue into 2025, according to a JLL report released on Thursday.
Driven by the all-time high sales in 2024, average annual sales during the post-pandemic years (2022-2024) have surpassed the average annual sales during the last decade, (2010-2019), by around 63 per cent. This speaks about the rising preference for home ownership among buyers across price segments particularly after the pandemic, despite a steady rise in property prices, the report points out.
Apartment sales in the ticket size range of Rs 1 crore and above recorded a 30 per cent year-on-year growth, indicating a rise in home purchase affordability, the report states.
Bengaluru, Mumbai, and Pune continue to lead annual sales across the top seven cities with a share of around 62 per cent. Steadily increasing demand for housing in these cities backed by healthy launches has resulted in 8 per cent growth in their total contribution to annual sales, when compared to 2023.
While the continued expansion of the tech industry and favourable weather conditions in Bengaluru and Pune play a critical role in influencing housing demand in these cities, Mumbai’s housing sales have been largely driven by improved connectivity to suburban locations and sister cities and redevelopment in core city areas. Investors and end-users confidence in long-term prospects for the residential sector in these cities has had a positive impact on housing sales, the report observes.
It further states that the residential asset class has also witnessed a record year in 2024 with the majority of the top seven cities registering their highest-ever sales including Bengaluru, Mumbai, Hyderabad, Pune, and Kolkata.
A total of 72,930 units were sold during Q4 2024, a marginal dip of around 3 per cent when compared to the same period last year. Bengaluru, Mumbai, and Pune accounted for around 64 per cent share in quarterly sales. Demand for high-value (Rs 3 crore and above) homes witnessed sustained growth accounting for around 14 per cent share in quarterly sales volume.
With the increased number of launches by reputed developers, ensuring timely delivery and steady price appreciation, new launches over the last couple of years have been witnessing healthy sales traction. 2024 saw more than 30 per cent Y-o-Y growth in contribution by new launches in annual sales, indicating strengthening buyer confidence and acting as a catalyst for higher sales momentum, the report states.
“Amid higher willingness to pay for quality homes and rising property prices, for the first time ever, apartments priced above Rs 1 crore accounted for more than 50 per cent share in annual sales. There has also been a significant growth of around 86 per cent in the premium (Rs 3-5 crore) segment sales and about 80 per cent growth in luxury (Rs 5 crore and above) segment sales when compared to 2023, driven by the rise in high-net-worth individuals, increasing disposable income levels and evolving buyer preference for bigger, tech-enabled, and future-ready homes,” said Samantak Das, chief economist at JLL
According to the report, new residential launches across the top seven cities also reached a record high in 2024. Around 3,02,000 housing units were launched during the year, the highest-ever annual residential supply across the top seven cities. On a yearly basis, 2024 launches have risen marginally by around 3 per cent Y-o-Y. Mumbai, Bengaluru and Hyderabad led annual launches with a 60 per cent share. The tech cities of Bengaluru, Chennai, Hyderabad, and Pune, largely driven by continued expansion in their commercial office sector together contributed around 60 per cent share in 2024 launches.
Despite higher launches being almost at par with sales, unsold inventory by the end of 2024 across the seven cities witnessed a decrease of 0.1 per cent on a Y-o-Y basis, amid robust demand momentum. Rising sales traction has also resulted in a Y-O-Y decline in the months to liquidate unsold inventory, which dropped from 26 months in Q4 2023 to 22 months by the end of 2024. Around 85-90 per cent of total annual sales during 2024 being recorded in under-construction projects speaks of strong buyer confidence even in projects in their early stages and has contributed to the decline in months to liquidate the unsold inventory, the report points out.
Q4 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 increases ranging from around 5 per cent to 20 per cent. Delhi-NCR recorded the highest price increase of around 20 per cent followed by Bengaluru with a significant hike of approximately 14 per cent. Chennai, Hyderabad, and Kolkata also witnessed around 10 per cent Y-o-Y growth in residential capital values. Amid soaring housing demand and quality launches, capital values have been on the rise and are expected to move northwards going forward, according to the report.
Following up on a record-high year in terms of sales and launches, 2025 is also expected to exhibit a strong performance amid rising urbanization levels, infrastructure developments and rising demand for premium homes driven by changing lifestyle preferences of consumers and higher disposable income levels.
