Mumbai recorded the highest sales volume nationwide with 47,259 units sold, marking a 16% year-on-year growth in H1 2024. With 9,130 units sold, Kolkata experienced the highest percentage growth in home sales at 25% year-on-year during the first half of 2024. Ahmedabad saw a 17% year-on-year increase as 9,377 units sold in the city during the January-June period.
The surge in sales has been complemented by a surge in development activities, evident from the launch of 1,83,401 units in H1 2024. This figure marks a decade-high in half-yearly launches, indicating a proactive response to escalating market demand. Mumbai led in new launches with 46,985 units, followed by Kolkata, which saw a remarkable 60% growth in new launches, and Pune with a robust 32% increase.
Commenting on the market dynamics, Gulam Zia, Senior Executive Director at Knight Frank India, highlighted the shift towards premium housing segments. “The residential market’s robust performance in H1 2024 saw sales exceed 1,73,000 units, a decade-high record. The premium category now commands 34% of the market, up from 15% in H1 2018,” he noted. This shift is mirrored in both demand and supply, with a notable increase in launches of properties priced above Rs 1 crore.
Affordable housing segment sees a drop in sales in H1 2024; premium luxury segment sees a significant growth
The report highlights a decline in sales for properties priced below Rs 50 lakh, which fell from 32% in H1 2023 (49,926 units) to 27% (46,178 units) in H1 2024. “The combined impact of rising property prices, increased home loan rates, and the disproportionately adverse effects of the pandemic in this category continue to dampen demand. The current sales share of 27% starkly contrasts with the 54% observed in H1 2018,” the report says. Mumbai, despite being the most expensive market, also led in affordable housing sales, witnessing an 11% year-on-year growth to 21,043 units.The mid-segment of India’s real estate market, encompassing properties priced between Rs 50 lakh to Rs crore, saw a decline in market share from 38% in the first half of 2023 to 32% in H1 2024. According to the Knight Frank data, sales in this ticket-size category totaled 55,715 units during the first half of 2024. Bengaluru, Mumbai, and Pune emerged as the key contributors, collectively accounting for more than 60% of sales in this segment. Bengaluru led with 11,778 units sold, closely followed by Mumbai at 11,546 units, and Pune with 11,195 units. This shift, however, is seen as a natural adjustment within a broader upward trajectory, fueled by sustained interest from homebuyers despite the decrease in percentage.
Housing sales during January to June 2024 in terms of different segments: Affordable, mid-premium and luxury
| |
Rs 50 lakh to Rs 1 crore | >Rs 1 crore |
|||
| City | Sales in units | City | Sales in units | City | Sales in units |
| Mumbai | 21,014 | Bengaluru | 11,778 | NCR | 20,795 |
| Pune | 8,391 | Mumbai | 11,546 | Mumbai | 14,699 |
| Ahmedabad | 3,640 | Pune | 11,195 | Bengaluru | 13,698 |
| Bengaluru | 1,928 | NCR | 5,034 | Hyderabad | 11,436 |
| NCR | 3,169 | Hyderabad | 5,471 | Pune | 4,939 |
| Kolkata | 4,137 | Chennai | 3,508 | Chennai | 7,957 |
| Chennai | 2,233 | Ahmedabad | 3,844 | Kolkata | 1,654 |
| Hyderabad | 1,666 | Kolkata | 3,339 | Ahmedabad | 1,893 |
| Total | 46,178 | Total | 55,715 | Total | 1,73,241 |
Source: Knight Frank ResearchThe higher end of the market, comprising residential units priced over Rs 1 crore and above, has witnessed significant growth. The luxury real estate market now commands a substantial 41% share of total sales across the eight major markets covered. This segment emerged as the primary driver of overall sales growth in H1 2024, experiencing a 51% year-on-year increase. Sales in this category surged to 71,349 units in H1 2024 from 47,130 units in the same period last year.
The National Capital Region (NCR) emerged as the leader in premium segment sales, recording 20,795 unit sales in H1 2024. This was followed closely by Mumbai with 14,699 units sold, and Bengaluru with 13,698 units.
The data underscores a clear trend towards higher-value properties, driven by evolving consumer preferences and a robust demand for premium living spaces. Despite the increase in sales in the premium segment, concerns about affordability persist in the mid-segment category, where adjustments are underway to align with market dynamics and consumer expectations.
Inventory and market health during the January-June period of 2024
Despite the surge in sales, the report notes a 3% year-on-year increase in unsold inventory levels, particularly in the premium segment, which saw a 27% rise. However, metrics like the Quarters to Sell (QTS) indicate improving market health, with the overall QTS falling to 5.9 quarters in H1 2024 from 9.5 quarters in H1 2021. The premium segment’s QTS level stood at a healthy 5.1 quarters, suggesting manageable inventory despite the increase.
Real estate outlook for next half of 2024
Looking ahead, experts anticipate sustained market momentum supported by stable economic conditions and continued growth in premium housing preferences. The focus remains on addressing challenges in the lower price categories to ensure more inclusive market growth.
Shishir Baijal, Chairman and Managing Director, of Knight Frank India, said, “Based on our expectation of continued stability in the socio-economic and political conditions and the current trajectory of growth, we anticipate a strong finish to the year 2024 with both residential and commercial office transactions noting record highs.”
