Mumbai: In 2024, India's residential growth momentum faced challenges due to robust homebuyer demand, rising property prices, and the impact of general and state elections. According to data from real estate consultant ANAROCK, housing sales in the top seven Indian cities experienced a slight decline of 4 percent, totaling approximately 459,650 units in 2024 compared to 476,530 units in 2023.
Despite this decrease in volume, the overall sales value of housing units surged by 16 percent year-on-year, increasing from around Rs 4.88 lakh crore in 2023 to approximately Rs 5.68 lakh crore in 2024.
The data revealed that the Mumbai metropolitan region led the sales with about 155,335 units sold in 2024, marking a 1 percent increase from the previous year. Pune followed closely with around 81,090 units sold, making these two western markets the frontrunners in residential sales for the year.
New property launches in the top seven cities saw a 7 percent annual decline, dropping from approximately 445,770 units in 2023 to about 412,520 units in 2024. Mumbai and Bengaluru accounted for nearly 50 percent of the new supply, leading the way in new launches.
Anuj Puri, Chairman of ANAROCK Group, commented, "The year 2024 has presented a mixed scenario for the Indian housing sector. The effects of general and assembly elections, coupled with a significant slowdown in project approvals, have inevitably influenced the availability of new housing."
Sales experienced a slight decline compared to 2023; however, this was counterbalanced by a 16 percent increase in overall sales value, driven by rising average prices and larger unit sizes, according to Anuj Puri.
On an annual basis, housing prices surged between 13 and 30 percent across the top seven cities, largely due to heightened input costs and robust demand from homebuyers.
Delhi-NCR witnessed the most significant annual increase, with average residential prices soaring by 30 percent, rising from Rs 5,800 per sq. ft. in 2023 to approximately Rs 7,550 per sq. ft. in 2024. Collectively, the top seven cities experienced a 21 percent annual rise in average residential prices, climbing from Rs 7,080 per sq. ft. in Q4 2023 to over Rs 8,590 per sq. ft. in Q4 2024.
In terms of budget categories, the demand for luxury housing and the introduction of new supply saw remarkable growth in 2024, as homebuyers continued to favor larger, higher-quality homes from reputable developers in the post-pandemic landscape. The addition of new luxury units across the top seven cities increased by 24 percent in 2024 compared to 2023.
Anarock anticipates that the demand for luxury housing will remain strong in 2025.
The Indian real estate sector reached new heights in 2024, despite the high monetary policy rates set by the Reserve Bank of India (RBI).
During the initial years of the COVID-19 pandemic—2020 and 2021—the real estate sector faced significant challenges as outdoor activities were severely limited, leading to a drop in demand in this vital economic sector. However, it has since recovered and performed relatively well in 2022, 2023, and 2024.
