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Mumbai: Knight Frank India’s latest report, India Real Estate: Residential and Office (July – December 2024), highlights a robust performance in the residential market, with annual sales reaching a 12-year high of 3,50,613 units across the top eight markets.
Residential sales grew 7% year-on-year (YoY), with Hyderabad and Pune reaching all-time highs and Mumbai recording 96,187 units sold—a 13-year peak, contributing 27% to the overall sales volume.
The higher ticket size segments drove momentum despite concerns of overheating, with the INR 20 – 50 million (INR 2- 5 Crores) category witnessing an 85% YoY growth, although the sub-INR 5 million (less than INR 50 Lakhs) and INR 5-10 million (INR 50 lakhs – 1 Crore) segments saw declining or fatigued sales.
Residential launches rose by 6% YoY, totalling 372,936 units, with Mumbai leading at 96,470 units.
The market health remained robust as the quarters-to-sell (QTS) ratio improved significantly from 9.5 in H1 2021 to 5.8 in H2 2024, indicating strong sales momentum. Backed by sales trends, prices appreciated across all markets, with Bengaluru seeing the highest growth at 12% YoY. These trends underline the continued resilience and evolving dynamics of India’s residential real estate sector.
Shishir Baijal, Chairman & Managing Director, Knight Frank India, said “The residential market has had a tremendous run since 2020 with 2024 sales volumes culminating in a 12-year high. The premiumisation trend has intensified as the market continues to shift toward the higher ticket-sizes with products much better suited to the increasing lifestyle needs of the demanding consumer. The overall improvement in market health metrics, stable economic and interest rate scenario along with the still strong momentum hold enough tailwinds for the market as it steps into the new year.”
Residential sales have steadily increased since 2020, a pivotal year that marked a significant turnaround for the sector. This growth was supported by policy interventions in certain markets, such as stamp duty rebates in Mumbai, Bengaluru, and Kolkata.
However, the primary driver of this resurgence has been the shift in end-user attitudes toward homeownership. The uncertainties of the pandemic, coupled with the need for living and working spaces at home, pushed buyers to prioritize homeownership and invest in amenities that promote a holistic living experience.
Bengaluru recorded the highest residential price increase in 2024, with average prices seeing a 12% YoY, followed by Hyderabad and Chennai at 8% and 7%, respectively. Mumbai, meanwhile, recorded its highest price per sq ft in the past 12 years, reaching INR 8,277.
