India's Home Sales Reach Record High of 3.03 Lakh Units in 2024, Up 11%: JLL

On the back of all-time high sales in 2024, average annual sales in the post-pandemic years, (2022-2024), have crossed average annual sales in the last decade (2010-2019) by nearly 63 per cent.

Residential property sales during 2024 saw steady growth to achieve a record-breaking volume of 3,02,867 units, which denotes an 11 per cent increase year-on-year and the pace is likely to continue into 2025 as well, reveals a report published by JLL on Thursday.

On the back of all-time high sales in 2024, average annual sales in the post-pandemic years, (2022-2024), have crossed average annual sales in the last decade (2010-2019) by nearly 63 per cent.

Advertisement

This has much to do with the increasing desire for home ownership across price points after the pandemic, though this is accompanied by a steadily rising property price, the report highlights.

The report says apartment sales in the ticket size range of Rs 1 crore and above recorded a 30 per cent year-on-year growth, indicating a rise in home purchase affordability.

Advertisement

Bengaluru, Mumbai, and Pune continue their dominance in the annual sales of all the top seven cities with a share of around 62 percent. Healthy demand for housing in these cities backed by steady launches has resulted in an 8 percent growth in their total contribution to annual sales as compared to 2023.

Reportedly, though the continued expansion of the tech industry and favorable weather conditions in Bengaluru and Pune play a critical role in influencing housing demand in these cities, housing sales for Mumbai have primarily been driven by improved connectivity to the suburban locations and sister cities and redevelopment in core city areas. The confidence of investors and end-users in long-term prospects for the residential sector in the cities has positively impacted housing sales, notes the report.

Advertisement

It further states that the residential asset class has also witnessed a record year in 2024 with the majority of the top seven cities registering their highest-ever sales including Bengaluru, Mumbai, Hyderabad, Pune, and Kolkata.

The company sold a total of 72,930 units during Q4 2024, which reflects a marginal dip of around 3 per cent when compared to the same period last year. Demand across cities like Bengaluru, Mumbai, and Pune accounted for around 64 per cent share in the quarterly sales. The demand for high-value housing of above Rs 3 crore has sustained itself and accounted for around 14 per cent share in the quarterly sales volume.

Advertisement

With the addition of more number of launches from reputed developers coming in with ensuring timely delivery and steady price appreciation, new launches over the past two years had been witnessing good sales traction. 2024 witnessed more than 30% Y-o-Y growth in the contribution by new launches in the annual sales of the market which, according to the report states, reflects bettering buyer confidence and acts like a catalyst in having higher sales momentum.

For the first time ever, apartments priced above Rs 1 crore accounted for more than 50% share in annual sales at a time of rising property prices when higher willingness to pay for quality homes increased sales. According to the report, during the third quarter of this year, luxury property sales had an about 86 per cent increase in the premium (Rs 3-5 crore) and about 80 per cent rise in the luxury (Rs 5 crore and above) as compared to last year 2023. With the increasing rate of high net worth individuals and growing levels of disposable incomes with a preference to buy larger tech-enabled, future-ready homes among buyers, so said Samantak Das chief economist at JLL

Advertisement

According to the report, new residential launches across the top seven cities also recorded a record high in 2024. Approximately 3,02,000 housing units were launched in the year, the highest-ever annual residential supply across the top seven cities. Year-over-year, 2024 launches have increased modestly by approximately 3 per cent. Mumbai, Bengaluru and Hyderabad led annual launches with a 60 percent share. The tech cities of Bengaluru, Chennai, Hyderabad, and Pune, largely driven by continued expansion in their commercial office sector together contributed around 60 per cent share in 2024 launches.

Though higher launches were almost at par with sales, unsold inventory by the end of 2024 across the seven cities witnessed a decrease of 0.1 per cent on a Y-o-Y basis, amid robust demand momentum. Rising sales traction has also led to a Y-O-Y decline in the months to liquidate unsold inventory, which declined from 26 months in Q4 2023 to 22 months by the end of 2024. Around 85-90 per cent of total annual sales during 2024 being recorded in under-construction projects speaks of strong buyer confidence even in projects in their early stages and has contributed to the decline in months to liquidate the unsold inventory, the report points out.

Advertisement

Q4 2024 saw residential price growth in the top seven cities of India: Delhi-NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune, and Kolkata. Y-o-Y price increases were observed between around 5 per cent to 20 per cent.

Delhi-NCR saw the highest price increase of around 20 per cent, followed by Bengaluru with a significant hike of approximately 14 per cent. Chennai, Hyderabad, and Kolkata also saw around 10 per cent Y-o-Y growth in residential capital values. The report indicated that with ever-increasing demand for housing, quality launches in the market will keep capital values moving northward.

Advertisement

Following a record year in terms of sale and launches, the year 2025 will also carry strong performance on the trend of increasing levels of urbanization, infrastructure development, and rising demand for premium homes driven by changing lifestyle preferences of consumers and higher levels of disposable income.

Read also| India Ranks 2nd in Emerging Tech Skills for 'Future of Work': QS Index

Advertisement

Read also| Government Inks Rs 2,960 Crore Deal with Bharat Dynamics for Missile Production for Indian Navy

Advertisement