In Q1 2024, India's housing market saw a 14% increase in sales compared to the previous year, with over 130,170 units sold across the top seven cities. MMR and Pune led the sales rise, comprising 51% of total transactions. New launches remained stable, with MMR leading at 33,800 units, while Bengaluru saw a notable 22% increase. However, Delhi-NCR experienced a significant drop in new launches. Unsold inventory decreased by 7%, notably in NCR. Property prices surged by 10-32% annually, posing affordability concerns despite positive market momentum. The future trajectory of the housing market awaits observation in subsequent quarters.
India's housing market continues its upward trend in 2024. According to Anarock, a leading property consultancy, over 130,170 housing units were sold across the top seven cities (Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), and Pune) in the first quarter (Q1) of 2024. This represents a 14% increase compared to last year's period (approximately 113,775 units sold in Q1 2023).
The robust growth in sales is attributed to a surge in demand for housing. This demand is particularly evident in MMR and Pune, which together accounted for over half (51%) of all sales in the top seven cities. MMR saw a significant 24% annual jump in sales, while Pune witnessed an increase of over 15%.
While sales are climbing, new housing launches have remained relatively stable. Across the top seven cities, new launches reached over 110,865 units in Q1 2024, a modest 1% increase compared to the previous year (approximately 109,570 units in Q1 2023). MMR led the way with around 33,800 new launches, though this represents a slight decline of 9% from Q1 2023. Conversely, Bengaluru saw a healthy 22% annual increase in new launches, reaching approximately 16,485 units. However, Delhi-NCR experienced a significant drop, with new launches dipping by over 42% to 7,270 units.
Available housing inventory across the top seven cities has shrunk by 7% annually. This means fewer unsold units are on the market compared to Q1 2023 (approximately 6,26,750 units). NCR witnessed the most dramatic decline in unsold stock, with a 27% decrease in Q1 2024. This puts NCR's unsold inventory level lower than other major cities like MMR, Pune, and Hyderabad.
Rising construction costs and strong demand have contributed to a significant 10-32% jump in average residential property prices across the top seven cities in the last year. Hyderabad and Bengaluru experienced the highest annual price increases, exceeding 32% and 25%, respectively.
The Indian housing market continues to show positive momentum in 2024. Strong sales figures and a reduction in unsold inventory (approximately 5,80,890 units by Q1 2024-end) point towards a seller's market. However, rising property prices may impact affordability for some buyers. It will be interesting to see how this trend unfolds in the coming quarters.
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