India residential market update: Q2 2024
Record-Breaking Growth and Strategic Launches Propel India’s Residential Market in Q2 2024
- Shweta Kakkar
Q2 2024 was the third consecutive quarter where residential sales exceeded 74,000 units and recorded an all-time high after the exceptional residential sales of 75,591 units in Q4 2023. The strategic launch of the right products by developers cognizant of demand and market dynamics led to this new growth phase in the residential market.
Highest ever launches of 80,345 units were recorded in Q2 2024, an increase of 5% y-o-y.
Interestingly, share of quarterly launches in the luxury segment (apartments priced at INR 3 crore and above) increased from 6% in Q2 2023 to 20% in Q2 2024. It is pertinent to note that the INR 1.5–3 crore segment had been prominent and had attracted most of the launches. Developers were launching mid-segment housing projects (75 lakh- 1 crore) along with the luxury category, as the appetite for these offerings remained high amongst homebuyers in the recent past.
Key Trends:
H1 2024 residential sales reached around 57% of total annual sales in 2023
Residential sales momentum continued to be on a high growth curve in the first half of 2024 driven by strong supply from reputed developers, favorable economic conditions, and positive buyer sentiments. The period recorded highest ever half yearly sales, with a remarkable 22% increase compared to the same period in 2023, totaling 154,921 units. This upward trajectory in demand paved the way for sustained growth in the residential market. In H1 2024, residential sales already reached 57% of the annual sales in 2023.
Highest ever half yearly launch of ~160,000 residential units
The number of residential units launched in the first half of 2024 reached a record high of 159,455. This translated to approximately 55% of the total units launched throughout the entire year of 2023. The supply of new residential projects exhibited consistent growth this year which could be attributed to the successful launch of strategically tailored products by developers who carefully assessed market demand and dynamics.
Bengaluru, Mumbai, and Delhi NCR drove quarterly residential sales
During Q2 2024, Bengaluru, Mumbai and Delhi NCR emerged as the top cities in terms of sales, accounting for around 63% share. Interestingly, in Bengaluru around 28% of its Q2 2024 new launches were sold out during the same quarter. Over three-fourths of the sales in Delhi NCR were in under-construction projects.
