Updated March 27th, 2024 at 15:16 IST

Housing market hits new heights with 14% surge in sales

In Q1 2024, MMR recorded its highest housing sales with approximately 42,920 units, marking a 24% increase from Q1 2023's 34,690 units.

Reported by: Business Desk
Housing heights | Image:Freepik
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Housing heights achieved: Housing sales in India have surged by 14 per cent year-on-year (YoY), reaching an all-time decadal high with around 1,30,170 units sold in Q1 2024 compared to 1,13,775 in Q1 2023 across the top 7 cities, according to Anarock data.

Regional housing sales snapshot

In the first quarter of 2024, NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 91 per cent of sales. The Mumbai Metropolitan Region (MMR) emerged as the frontrunner in housing sales, with approximately 42,920 units sold, marking a substantial 24 per cent increase from the same period in 2023, when approximately 34,690 units were sold. 

Pune followed closely, witnessing robust growth as approximately 22,990 units were sold, reflecting a notable 15 per cent increase compared to Q1 2023's sales figure of around 19,920 units. Hyderabad experienced a surge in housing sales, recording approximately 19,660 units sold in Q1 2024, marking a substantial 38 per cent increase from Q1 2023's sales of around 14,280 units. 

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However, the National Capital Region (NCR) witnessed a decline in housing sales, with approximately 15,650 units sold in Q1 2024, representing a 9 per cent decrease from the previous year's sales figure of around 17,160 units. Similarly, Kolkata saw a downturn in housing sales, with approximately 5,650 units sold in Q1 2024, reflecting a 9 per cent decline from Q1 2023's sales of around 6,185 units. 

On a positive note, Bengaluru experienced a 14 per cent increase in housing sales, with approximately 17,790 units sold in Q1 2024 compared to around 15,660 units sold in the same period last year. 

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Chennai, however, saw a decline in housing sales, with approximately 5,510 units sold in Q1 2024, marking a 6 per cent decrease from Q1 2023. This decline can be attributed, at least in part, to factors such as the introduction of Tamil Nadu government's three-tier guideline values for apartment complexes in late 2023, alongside high stamp duty and registration charges.

New supply vs inventory dynamics

While new launches experienced a modest 1 per cent yearly rise, regions such as MMR and Hyderabad saw significant new supply additions, contributing to 51 per cent of the total new launches. However, the overall available inventory in the top 7 cities saw a decline of 7 per cent annually.

Average residential property prices witnessed a substantial upswing, ranging between 10 per cent to 32 per cent in Q1 2024 compared to the previous year. This surge can be attributed to various factors, including escalating construction raw material costs and a surge in demand. Hyderabad and Bengaluru emerged as frontrunners in this price hike, recording annual increases of over 32 per cent and 25 per cent, respectively.

Inflation control powers property

Against the backdrop of India's robust economic performance, characterised by the highest GDP growth rate globally and controlled inflation, the real estate sector continues to thrive. Such positive macroeconomic indicators boost homebuyer sentiment and reinforce the appeal of real estate as an investment avenue.

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Published March 27th, 2024 at 15:16 IST