Experts Predict Record-Breaking Housing Sales In 2024
Housing sales in 2024- In the first nine months of 2023, over 1.96 lakh units were sold in India, demonstrating the market’s impressive expansion. Notably, this accounts for about 91% of all sales in 2022, demonstrating robust consumer confidence in spite of global difficulties. This blog examines the rise in sales within cities, the rising demand for upscale real estate, developer tactics in developing nations, and the market forecast for 2024.
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Since January 2023, positive government policies, expanding infrastructure, and the introduction of new real estate have all contributed to a sharp increase in residential sales in India’s main cities. From January to September of 2023, there will be about 2.24 lakh new launches. During the same period, sales in the residential segment surpassed 1.96 lakh units, demonstrating a notable level of consumer confidence and market stability. Nonetheless, YoY increases in real estate prices were 10%, with Bangalore, Kolkata, and Delhi NCR at the top of the list.
Following a significant decline during the COVID-19 pandemic, home sales in India’s major cities increased by over 20% YoY in the beginning of 2023, and this trend continued in the ensuing quarters. The development of Tier-1 cities has been primarily influenced by beneficial government policies, infrastructure expansion, and the introduction of new real estate throughout 2023.
Overview of residential growth in Q3 2023
In Q3 2023, housing prices in the top eight cities in India increased by an astonishing eight percent year over year. Strong home demand and the top developers’ constant introduction of high-caliber projects are responsible for this growing trend. With a whopping 11% YoY increase in residential costs, Hyderabad leads the way, closely followed by Bangalore and Kolkata, which saw YoY increases of 6% and 7%, respectively.
Recent quarters have shown a notable uptick in the mood of homebuyers. The substantial sales volume observed, especially in Tier-1 cities throughout India, validates this feeling. It is expected that strong buying momentum would continue despite the increase in home prices, which is mainly the result of increased raw material costs and constant demand. Particularly in the post-pandemic era, consumers are exhibiting a definite thirst for buying bigger, larger homes with better amenities.
The Q3 2023 residential prices across all of India are shown in this table.
| Market | Average price | YoY change |
| Chennai | Rs 7,712 per sq ft | 7% |
| Bangalore | Rs 9,471 per sq ft | 18% |
| Delhi NCR | Rs 8,655 per sq ft | 12% |
| MMR | Rs 19,585 per sq ft | 1% |
| Kolkata | Rs 7,406 per sq ft | 12% |
| Ahmedabad | Rs 6,613 per sq ft | 9% |
| Hyderabad | Rs 11,040 per sq ft | 19% |
| Pune | Rs 9,014 per sq ft | 12% |
Quarterly real estate debuts reach their highest points since 2013
In India’s real estate market, an interesting development occurred in the third quarter of 2023. 73,000 new residences were built by builders, the most in the previous ten years. Strong sales results and a solid economic base have motivated these new launches in India’s top seven cities.
Sales of residential units by city in the top cities
The residential unit sales breakdown for Q3 of 2023 is as follows:
| Market | Q2 2023 | Q3 2023 |
| Mumbai | 13,200 | 16,509 |
| Pune | 13,163 | 13,440 |
| Delhi NCR | 9,368 | 10,046 |
| Hyderabad | 7,802 | 7,577 |
| Kolkata | 2,662 | 3,680 |
| Bangalore | 13,596 | 15,960 |
| Chennai | 4,756 | 2,428 |
| Total | 64,547 | 69,640 |
Strong sales growth in the market for luxury homes
Demand for properties costing more than Rs 1.5 crore dominated the market in the third quarter of 2023, accounting for 24.3 percent of all transactions. This change suggests that purchasers are becoming increasingly interested in larger, more opulent residences. Developers are now concentrating more on creating high-end properties after realising this trend.
Apart from Delhi-NCR, there has been a surge in interest in the luxury housing market in other major cities including Mumbai, Hyderabad, Pune, and Kolkata. With the most luxury properties sold, Mumbai is in the lead, closely followed by Pune, Delhi-NCR, & Bangalore.
In 2023, the Indian real estate market saw unheard-of expansion, especially in the luxury home market. The trend might be related to the evolving urban tastes that prioritise luxury and greater living areas. Delhi-NCR became a hotspot as sales of luxury homes increased dramatically. This growth was driven by improved economic indicators and a rise in NRI investments. Indeed, it appears that the luxury home market in 2024 won’t be looking back.
The outlook for the housing industry in 2024
Though short-term sales may be impacted by inflation and global concerns, the long-term picture is still bright. The positive view for the housing market in 2024 will be influenced by the state of the overall economy and the attitude of prospective buyers.
The Indian repo rate rose throughout the previous year as a result of inflationary pressures. Leading banks increased the interest rates on house loans as a result. The current median house loan rate is 8.9 percent, which is still less than the pre-pandemic figure of 9.2 percent in 2019. This is despite the increase.
Development of the infrastructure is another contributing element. Because of the continuous infrastructural development, developers are shifting their focus to suburbia and developing micromarkets. Because of the improved infrastructure, increasing population, and availability of land, these localities are seeing an increase in residential projects and sales. In these expanding markets, seasoned developers with institutional backing are introducing new projects at varying price points.
The following are some things to watch out for in 2024:
Growth of the residential market: It is expected that the residential market will continue to be buoyant and have the ability to reach new heights, particularly in the mid- and luxury sectors.
2024 sales forecast: Residential sales should rise by 10% to 15%, or approximately three lakh units.
New launches: There appears to be a good supply of new launches, as seen by the approximately 725 acres of land purchased for planned residential projects between January & November 2023.
Diverse product launches: Plotted projects, low-rise flats, row houses, & villaments are just a few examples of the diverse products that are expected to be launched in the next years. This trend is expected to continue.
Strong supply pipeline: It is anticipated that reputable developers will have a robust supply pipeline, with an emphasis on outlying locations undergoing infrastructure development.
Products that are tech-driven and sustainable: In 2024, there may be a greater release of products that are both technologically advanced and sustainable, aimed at modern consumers.
Designs motivated by the needs of the consumer: Reputable developers that concentrate on carefully planned homes with comprehensive social infrastructure & integrated townships may be the way of the future.
Conclusion
In the previous ten years, there have been an unprecedented amount of new property launches, which has led to strong demand and subsequent price increases for residential real estate in the main cities. As a result, there is a growing residential market with favourable investment opportunities. Perhaps as more infrastructure projects are being undertaken in both existing and growing nations, the housing sector will reach new heights.
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