Housing sales jump 68% in Q1 to Rs 1.1 lakh crore

Housing market booms: Housing sales experienced a substantial 68 per cent surge in value, reaching nearly Rs 1.11 lakh crore during the January-March period in major cities, driven by increased volumes and price appreciation, according to a report by PropTiger.

The value of housing sales escalated to Rs 1,10,880 crore in the first quarter of this year from Rs 66,155 crore in the corresponding period of the previous year.

Vikas Wadhawan, Group CFO of REA India and Business Head of PropTiger.com, expressed optimism about the economy as housing sales saw growth in both volume and value terms. He highlighted that over 200 ancillary industries, including cement and steel, rely on the real estate sector.

"Growth in housing sales both in volume and value terms augurs well for the overall economy as more than 200 ancillary industries, including cement and steel, are dependent on the real estate sector," he said.

In terms of area, housing sales witnessed a significant 63 per cent increase to 162 million sq ft in the first quarter of 2024 from 99 million sq ft in the same period last year.

The number of housing units sold also rose by 41 per cent to 1,20,640 units during January-March 2024 compared to 85,840 units in the corresponding period of the previous year.

Success contributors identified

Wadhawan commented on the flourishing Indian housing market, attributing its success to factors like strong economic growth, stable mortgage rates, and growing aspirations for homeownership.

PropTiger highlighted that the sales value was calculated by multiplying the total number of units sold by the weighted average price and further by the weighted average size of the properties.

The report indicated substantial growth in housing sales across various cities. For instance, Ahmedabad witnessed a more than doubling of housing sales to Rs 9,090 crore, while Bengaluru and Chennai experienced a 52 per cent increase each in sales. Delhi-NCR saw a significant surge, with housing sales jumping over three times to Rs 12,120 crore.

City sales trends

Similarly, Hyderabad saw a doubling of housing sales to Rs 23,580 crore, while Kolkata and Pune recorded growth of 59 per cent and 32 per cent, respectively.

Major cities like Mumbai, Hyderabad, Delhi NCR, and Pune collectively accounted for 76 per cent of the total transaction value, showcasing heightened demand and a notable 15–20 per cent uptick in property prices within key business districts, according to Ankita Sood, Head of Research at PropTiger.com and Housing.com.

Sood anticipated the momentum to continue over the next two quarters, driven by economic growth and robust demand.

(With PTI Inputs)