India's Residential Sales Surge 11% to Record 3.03 Lakh Units in 2024: JLL

Mumbai, Jan 16 (NationPress) In 2024, sales of residential properties experienced remarkable growth, achieving a remarkable volume of 3,02,867 units, reflecting an 11% increase compared to the previous year. This upward trend is anticipated to persist into 2025, as reported by JLL on Thursday.

The exceptional sales figures in 2024 have led to average annual sales in the post-pandemic years (2022-2024) exceeding those of the previous decade (2010-2019) by approximately 63%. This trend highlights a growing desire for home ownership among buyers across various price ranges, especially after the pandemic, despite ongoing increases in property prices, the report indicates.

The sales of apartments priced at Rs 1 crore and above demonstrated a 30% year-on-year growth, suggesting an increase in affordability for home purchases, according to the report.

Bengaluru, Mumbai, and Pune remain the frontrunners in annual sales across the top seven cities, accounting for about 62% of total sales. The consistent demand for housing in these metropolitan areas, supported by healthy new launches, has resulted in an 8% increase in their overall contribution to annual sales compared to 2023.

The expansion of the tech industry and favorable climate conditions in Bengaluru and Pune have significantly impacted housing demand, while improved connectivity and redevelopment efforts in Mumbai have bolstered housing sales. The report notes that investor and end-user confidence in the long-term outlook for the residential sector in these cities has positively influenced sales.

Additionally, 2024 marked a record year for the residential asset class, with most of the top seven cities, including Bengaluru, Mumbai, Hyderabad, Pune, and Kolkata, reporting their highest-ever sales.

In Q4 2024, 72,930 units were sold, showing a slight dip of approximately 3% year-on-year. Bengaluru, Mumbai, and Pune accounted for about 64% of quarterly sales. The demand for high-value homes priced at Rs 3 crore and above experienced continued growth, representing roughly 14% of the quarterly sales volume.

The rise in new launches by reputable developers, along with timely project deliveries and consistent price appreciation, has led to robust sales activity. In 2024, new launches contributed over 30% year-on-year growth to annual sales, signifying enhanced buyer confidence and acting as a catalyst for increased sales momentum, as stated in the report.

“With a greater willingness to invest in quality homes and escalating property prices, for the first time, apartments priced above Rs 1 crore comprised more than 50% of annual sales. The premium segment (Rs 3-5 crore) sales saw a remarkable 86% growth and luxury segment (Rs 5 crore and above) sales increased by about 80% compared to 2023, driven by a rise in high-net-worth individuals and increasing disposable incomes,” stated Samantak Das, chief economist at JLL.

The report highlights that new residential launches across the top seven cities also reached an all-time high in 2024, with approximately 3,02,000 housing units launched, marking the highest annual residential supply. Year-on-year, 2024 launches saw a modest increase of about 3%. Mumbai, Bengaluru, and Hyderabad led these launches with a share of 60%.

Despite the number of launches being nearly equal to sales, unsold inventory by the end of 2024 across the seven cities decreased by 0.1% year-on-year, amidst strong demand. The increasing sales momentum also contributed to a reduction in the time required to liquidate unsold inventory, which fell from 26 months in Q4 2023 to 22 months by the end of 2024. The fact that around 85-90% of total annual sales in 2024 were recorded in under-construction projects indicates strong buyer confidence in early-stage projects and has played a role in reducing unsold inventory, the report notes.

Q4 2024 saw continued residential price growth across the top seven cities (Delhi-NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune, Kolkata), with year-on-year price increases ranging from approximately 5% to 20%. Delhi-NCR experienced the highest price increase of around 20%, followed by Bengaluru with a significant rise of about 14%. Chennai, Hyderabad, and Kolkata also recorded around 10% year-on-year growth in residential capital values. Amid surging housing demand and quality launches, capital values have been trending upwards and are expected to continue to rise, according to the report.

Following a record-breaking year in sales and launches, 2025 is projected to perform strongly, driven by rising urbanization, infrastructure development, and increasing demand for premium homes influenced by changing consumer lifestyle preferences and higher disposable income levels.