Residential Transactions and Sales Value Trends

In 2024, the number of registered residential transactions reached 5.77 lakh, compared to 5.56 lakh in 2023, reflecting a 4% increase. The registered sales value also rose to Rs. 4.03 lakh crore, up 2% from Rs. 3.95 lakh crore in 2023. Despite a slight dip in the average sales value per unit (Rs. 0.70 crore in 2024 from Rs. 0.71 crore in 2023), the overall performance demonstrates the ongoing strength of the residential real estate sector.

Tanuj Shori, Founder and CEO of Square Yards, commented, “The Indian residential real estate market has entered a promising phase post-pandemic, fueled by pent-up demand and a renewed desire for homeownership. While the sector experienced exceptional growth in the past few years, the numbers in 2024 indicate a natural market cycle. Annual sales have consistently surpassed 5 lakh units and Rs. 4 lakh crore in total value—far exceeding pre-2020 levels. This is not a slowdown but rather a sign of a maturing market, poised for sustained growth in the coming years.”

Regional Performance

The western region emerged as the dominant player, with cities like Mumbai, Thane, Navi Mumbai, and Pune accounting for 61% of the total registered transactions and 69% of the overall sales value. In the southern region, Bengaluru and Hyderabad together contributed 25% of the total transactions. Bengaluru recorded nearly 0.8 lakh registrations, although a slight dip occurred due to the E-khata rollout. Hyderabad, however, continued its upward trajectory, recording 80% of Bengaluru’s volume, strengthening its position as a key real estate hub.

Price Trends Across Major Cities

The sustained demand in 2024 has led to significant property price hikes across major cities. Gurugram stood out with an extraordinary 132% rise in property prices since 2019, driven by high demand for luxury and ultra-luxury homes. Other northern cities like Noida and Greater Noida also saw substantial price increases, with the upcoming Jewar Airport further boosting interest in these areas. Over the past five years, property prices across key cities have witnessed remarkable growth, with prices rising by an average of 60%.

Price Growth Over the Last 5 Years (2019 vs. 2024):

• Gurugram: Rs. 5,820 to Rs. 13,500 (132%)
• Noida & Greater Noida: Rs. 4,500 to Rs. 7,500 (67%)
• Bengaluru: Rs. 5,450 to Rs. 9,050 (66%)
• Pune: Rs. 5,200 to Rs. 8,300 (60%)
• Ahmedabad: Rs. 3,580 to Rs. 5,500 (54%)
• Hyderabad: Rs. 5,250 to Rs. 7,500 (43%)
• Mumbai MMR: Rs. 9,500 to Rs. 14,200 (49%)
• Chennai: Rs. 5,200 to Rs. 6,940 (33%)
• Kolkata: Rs. 4,510 to Rs. 5,890 (31%)

Supply and Developer Confidence in 2024

Developers exhibited strong confidence in 2024, launching over 3.9 lakh new units and delivering more than 4 lakh units across major cities. The demand for gated communities and lifestyle amenities led developers to align their offerings with evolving consumer preferences. Developers also embraced cutting-edge technology and innovative designs. The NIFTY Realty Index, which tracks the performance of leading real estate stocks, outperformed other sectoral indices on the NSE in 2024, registering an impressive 40% gain year-to-date.

Outlook for 2025

Looking ahead to 2025, the outlook remains optimistic, with over 3.6 lakh units expected to be delivered across major cities. Leading developers have an ambitious pipeline of nearly 300 million sq. ft. for FY2025. This robust pipeline is anticipated to further boost transaction volumes and cater to the diverse needs of buyers. Despite a moderation in growth rates, the Indian real estate sector continues to perform well above pre-pandemic levels. The positive economic environment and shifting lifestyle preferences are expected to sustain momentum, ensuring another promising year for developers, homebuyers, and investors.

Also Read: AI in real estate

The post Residential Property Transactions Soar Past 5.5 Lakh in 2024, Grossing Over Rs. 4 Lakh Crore; Property Prices Surge 60% in Five Years appeared first on Square Feat India.

Annual Price Surge of 12%

The report highlights a significant annual growth in housing prices, with an average increase of 12% year-on-year (YoY) across the eight major cities. Delhi NCR recorded the highest YoY growth, with prices surging by 30%, followed closely by Bengaluru.

Quarterly Price Increases: Delhi NCR and Bengaluru Lead

Delhi NCR witnessed the highest quarterly price rise at 16%, driven by substantial price hikes in micro-markets such as Dwarka Expressway and Greater Noida. Bengaluru followed with an 8% increase in average housing prices. Notably, Delhi NCR’s luxury segment saw a considerable boost, with 3-4 BHK configurations experiencing up to a 12% QoQ price increase.

Unsold Inventory Declines Amidst Robust Demand

The report also notes a decrease in unsold inventory across most cities, reflecting robust sales activity. Kolkata experienced the highest sequential decline in unsold inventory at 5%, with Pune, Ahmedabad, and Chennai also seeing reductions. Despite these positive trends, MMR reported a slight increase in unsold units due to a surge in new launches.

Pune and Ahmedabad See Notable Reductions in Unsold Units

Pune stood out with the most significant annual drop in unsold inventory, falling by 13%. Ahmedabad and Chennai also reported a decrease in unsold housing units, with annual reductions ranging from 6% to 8%. This reduction indicates a healthy absorption rate in these markets.

Continued Growth and Market Dynamics

Boman Irani, President of CREDAI National, attributed the steady growth to strong homebuyer sentiment and ongoing positive market conditions. He emphasized that the festive season and government infrastructure initiatives are expected to further impact housing prices and inventory levels positively.

Badal Yagnik, CEO of Colliers India, noted that despite rising prices, demand remains robust, supported by stable interest rates and recent budgetary measures. He anticipates that the upcoming festive season will invigorate the housing market with increased sales and new launches.

Micro-Market Insights: Delhi NCR and Bengaluru

In Delhi NCR, Dwarka Expressway and Greater Noida saw impressive quarterly price increases of 35% and 24%, respectively. Bengaluru’s Inner East and Periphery & Outer East micro-markets reported notable price rises, with Inner East experiencing a 25% increase.

Outlook and Future Projections

Vimal Nadar, Senior Director and Head of Research at Colliers India, highlighted the strong demand in luxury and ultra-luxury segments, particularly for spacious units. The recent changes in long-term capital gains tax are expected to boost investor and homeowner sentiment, further supporting market growth.

As India approaches the festive season, industry stakeholders will closely monitor new launches and housing stock, anticipating continued momentum in the residential real estate sector.

Also Read: CIDCO to Launch Housing Scheme for 902 Flats on Krishna Janmashtami

The post Housing Prices Rise Across Top Indian Cities, Reports CREDAI-Colliers-Liases Foras appeared first on Square Feat India.