India’s housing market has witnessed an impressive surge in sales value in 2024, with the total value increasing by 16% to ₹5.68 lakh crore, up from ₹4.88 lakh crore in 2023. Despite a slight dip in the number of units sold, the rise in property prices and an increasing demand for larger living spaces have played a crucial role in driving this growth. According to the latest report from real estate consultancy Anarock, housing sales across seven major Indian cities remained robust, with significant contributions from Mumbai and Bengaluru.
However, the volume of sales saw a 4% year-on-year decline, with 4,59,650 units sold in 2024, compared to 4,76,530 in the previous year. This drop is largely attributed to slower project approvals, particularly during the election period. Despite this, Mumbai Metropolitan Region (MMR) led the country in housing sales, with approximately 1,55,335 units sold, marking a modest 1% rise over the previous year. Bengaluru followed closely with a 2% increase, recording 65,230 units sold.
A significant shift was also noted in the supply of new homes. The total new launches across the top seven cities fell by 7%, from approximately 4,45,770 units in 2023 to 4,12,520 in 2024. Nevertheless, the luxury and ultra-luxury segments accounted for nearly 30% of new launches, while the affordable housing share remained relatively low at 16%. Notably, MMR and Bengaluru together accounted for 50% of the total new supply, indicating a strong preference for these urban centres.
The surge in housing prices across the top seven cities has been noteworthy, with average prices rising by 21% year-on-year, from ₹7,080 per sq. ft. in Q4 2023 to ₹8,590 per sq. ft. in Q4 2024. This price escalation, coupled with a growing appetite for larger homes, reflects the changing dynamics of the Indian real estate market. While this surge can be attributed to increased input costs and high demand, it also raises concerns about affordability, especially for the middle-class segment. From a sustainability perspective, the rise in property prices could lead to increased pressure on urban infrastructure and greater inequality in housing access. However, with large developers planning new projects and government interventions aimed at promoting affordable housing, the outlook remains cautiously optimistic for the coming years. As the market stabilises in 2025, the focus will likely shift towards creating more sustainable and affordable housing solutions to meet the growing demand.
