India’s residential real estate market showed mixed results in 2024, as housing sales declined by 4% compared to the previous year, but the overall sales value saw a robust 16% increase. According to a report by ANAROCK, around 459,650 units worth approximately INR 5.68 lakh crore were sold in the top seven cities in 2024, down from 476,530 units valued at INR 4.88 lakh crore in 2023.
The top-performing market was the Mumbai Metropolitan Region (MMR), which registered the highest sales with 155,335 units, a modest 1% increase from 2023. Pune followed with 81,090 units sold, while Bengaluru also saw a slight growth in sales, up 2% to 65,230 units. Together, MMR, Pune, Bengaluru, Hyderabad, and NCR accounted for 92% of the total sales in the top cities.
Despite the decline in sales volume, the surge in average property prices led to an overall increase in sales value. In 2024, residential prices across the top seven cities rose by 21%, with Delhi-NCR seeing the steepest hike of 30%. The rise in prices was attributed to increasing construction costs, higher demand for larger homes, and a shift towards luxury housing. The average price per square foot in Q4 2024 was INR 8,590, up from INR 7,080 in Q4 2023.
New Launches Decline, Luxury Segment Surges
The report also highlighted a 7% year-on-year decline in new residential launches, from 445,770 units in 2023 to 412,520 units in 2024. MMR and Bengaluru led in new supply, accounting for nearly 50% of the total new launches. NCR saw a notable 44% rise in new supply, with 53,000 units launched in 2024 compared to 36,735 units in 2023.
While the overall launch numbers fell, the luxury and ultra-luxury segments (>INR 1.5 crore price bracket) saw a significant uptick in both demand and supply. Approximately 30% of new supply in 2024 was in these high-end categories, reflecting the continued trend of homebuyers opting for larger, premium homes.
Price Trends and Inventory
Price growth varied across cities, with MMR recording a 21% increase in average prices, while Bengaluru and Hyderabad saw price hikes of 28% and 27%, respectively. The luxury market, in particular, remained strong, with NCR’s ultra-luxury segment seeing substantial growth.
Available inventory across the top cities decreased by 8% in 2024, as limited new launches contributed to the tightening of unsold stock. Pune experienced the sharpest decline in unsold inventory, dropping by 20% year-on-year. However, Bengaluru and Chennai saw a slight rise in available stock.
Outlook for 2025
Looking ahead to 2025, ANAROCK Chairman Anuj Puri noted that while the rapid price hikes may stabilize, steady growth is expected due to continued demand and increasing input costs. He also mentioned that new supply would pick up pace in 2025, driven by listed developers who have significant inventory lined up. However, the election season and slower project approvals in 2024 have temporarily dampened housing growth. Luxury housing demand, in particular, is expected to remain strong as homebuyers continue to prioritize quality and larger living spaces.
Also Read: With 5% Stamp Duty Housing Sales In City See A Drop
