India Real Estate Report: In terms of residential markets, in the first half of the year 2024, home sales in the top 8 cities of the country have reached an 11-year high. In which the demand for expensive and luxury homes has been the highest. Homes priced above Rs 1 crore have now emerged as the largest segment in premium housing. Homes priced above Rs 1 crore now account for 41 per cent of total housing sales.
173,241 homes sold in the first half of 2024
Real estate consultant Knight Frank India has released the India Real Estate Flagship Report (India Real Estate H1 2024) for the first half of 2024. This report mentions the impact on the residential and office segments in the top eight cities of the country. According to the report, a total of 183,401 housing units have been launched in these top 8 cities in the first half of 2024, which is 6 percent more than in 2023. Whereas in the first half of 2024, 173,241 houses have been sold, which is 11 percent more than the same period of 2023. According to the report, a total of 86,896 housing units have been sold in the second quarter of 2024, which is 12 percent more than the second quarter of 2023.
Residential market boom since the pandemic
According to the report of Knight Frank India, all segments of the real estate industry have seen a strong recovery since the Corona epidemic. But the fastest recovery has been seen in the residential market. Since 2020, sales volume in the primary market has grown at a rate of 29 percent annually and in 2023, housing sales have reached a 10-year high. Market sentiment has been positive due to the boom in the economy and excellent GDP figures. According to the report, due to increase in savings during the lockdown, very little impact on the income of people in the mid and high income brackets and strong estimates of economic growth, there has been a huge demand in the residential real estate market.
Increased demand for premium homes
According to the report, housing sales are expected to remain strong in 2024 as well and in the first half of 2024, housing sales reached an 11-year high. In the first half, 173,241 housing units were sold, which is 11 per cent higher than last year. Shishir Baijal, Chairman and MD, Knight Frank India, said on the report, the residential market is witnessing continuous strength and the demand for homes has reached an 11-year high in the first half of 2024. The demand figures for homes are pointing towards resilient growth. He said that the demand for premium homes has become a part of the residential market and sales of homes priced above Rs 1 crore are steadily increasing.
117% jump in sales of expensive homes in Mumbai!
According to the report of Knight Frank India, housing sales have increased in all markets except Delhi NCR as compared to last year. Sales in Delhi NCR have declined by 4 percent. In Hyderabad, 18,573 housing units were sold in the first half of 2024, which is an all-time high. 47,259 units have been sold in Mumbai, which is a 13-year high and sales have increased by 16 percent compared to the same period last year. In fact, there has been a jump of 117 percent in the sales of houses priced above Rs 1 crore in Mumbai. According to the report, the share of sales of houses priced above Rs 1 crore in total housing sales in all eight cities is about 41 percent. Whereas in this price segment, sales have increased by 51 percent compared to last year. Sales of houses priced between Rs 50 lakh and Rs 1 crore have declined by 8 percent. While sales of houses priced below Rs 50 lakh have declined by 6 percent. It is clear from these figures that the focus of homebuyers has shifted towards luxury and premium price category homes.
Low demand for affordable housing
According to the report, there has been a decline in the sales of houses priced less than Rs 50 lakh in the last five half-years. Despite the great boom in the residential market, houses priced less than Rs 50 lakh are not selling, for which the demand has been low due to the continuous increase in property prices, expensive home loan rates and the bad effect of the pandemic on the homebuyers coming in this segment. So developers have also increased their focus on launching premium housing projects. In the first half of 2024, the launch of housing units priced more than Rs 1 crore has increased to 47 percent, which was 36 percent in the first half of 2023.
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