16% Surge in India’s Housing Sales Value
India’s housing sector in 2024 has experienced a mixed performance, with some cities seeing an uptick in sales value while new launches have slowed significantly. According to recent data from ANAROCK Group, the overall housing sales in the top seven Indian cities dipped marginally by 4% in 2024, standing at approximately 4.59 lakh units compared to 4.76 lakh units in 2023. This slight dip in volume was largely due to a combination of factors, including the effects of the general and state elections and rising property prices.
Despite this, the sales value of housing units saw a robust increase of 16% year-on-year, from Rs 4.88 lakh crore in 2023 to Rs 5.68 lakh crore in 2024. The surge in sales value can be attributed to the steady rise in property prices across the board, which has been a significant driver of this growth. Even though fewer units were sold, the prices of those that were transacted were notably higher, contributing to the substantial rise in the overall market value.
MMR and Pune Lead Housing Sales in 2024
Mumbai Metropolitan Region (MMR) emerged as the leader in housing sales, recording approximately 1.55 lakh units sold in 2024, a 1% increase from the previous year. The robust performance of MMR is indicative of the region’s continued dominance in the Indian real estate market. Alongside MMR, Pune has also shown a strong performance, with nearly 81,090 units sold in 2024. These two Western Indian markets have emerged as the major contributors to the housing sales boom this year, reflecting a broader trend of urbanisation and migration towards key metropolitan areas.
Notably, MMR and Pune together accounted for a significant share of the total sales in 2024, underscoring the demand for residential properties in these regions. While the overall sales volume in the top seven cities witnessed a slight drop, the strong demand for properties in these two cities highlights a clear regional shift. The rise in property prices, paired with the ongoing urbanisation of these areas, continues to make them attractive to both investors and homebuyers.
Housing Supply Declines Amid Project Approval Delays
However, the Indian housing market also faced some challenges in 2024. One of the key issues affecting the sector has been a marked slowdown in new housing launches. The top seven cities saw a 7% decline in new launches, with approximately 4.12 lakh units launched in 2024 compared to 4.45 lakh units in 2023. MMR and Bengaluru accounted for nearly half of the new supply, continuing to drive the momentum in these cities.
ANAROCK Group attributes the slowdown in new launches to the impact of the general and assembly elections, which led to delays in project approvals and slower pace of construction. As a result, many developers have held off on launching new projects until there is greater certainty in the market. This has contributed to a tightening supply in key markets, even as demand for properties remains strong.
A Shift Towards Sustainable Housing Amid Rising Prices
As property prices rise, there is an increasing emphasis on sustainable and eco-friendly housing practices. The Indian housing market, while still focused on luxury and high-value properties, is seeing a shift towards more sustainable living options. This includes the adoption of green building standards, energy-efficient designs, and eco-conscious construction materials.
This trend is particularly important in light of the rapid urbanisation of cities like Mumbai and Bengaluru, where increased construction activity can lead to environmental challenges. Sustainable housing can play a critical role in mitigating these challenges, ensuring that urban expansion does not come at the cost of the environment. Developers are increasingly recognising the importance of green certifications and energy-saving amenities, as homebuyers become more conscious of their environmental impact.
The surge in housing sales value, despite a slight drop in volume, reflects a complex and evolving market. While demand remains robust, the price appreciation is making homeownership more difficult for many. As the industry focuses on improving supply, there is a growing call for sustainable practices that can ensure long-term growth and environmental stewardship in the housing sector.
