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74,486 housing units sold in Q1 2024; share of affordable housing sales decline
Bengaluru, MMR, and Pune drive Q1 2024 residential sales recording highest Q1 sales performances at a cumulative total of 47,388 units
Housing sales in the first quarter (Jan-March) of 2024 witnessed a 20% increase compared to the same period in 2023, with 74,486 units getting sold in the top seven markets across the country on the back of rising demand. The number is expected to touch more than 3 lakh units by the end of the year, JLL said in its report on April 15.
Bengaluru, MMR, and Pune drive Q1 2024 residential sales recording highest Q1 sales performances at a cumulative total of 47,388 units. Residential sales are expected to touch around 3 lakh units by the end of 2024, it said.
Also Read: Homes worth ₹1.11 lakh crore sold during Jan-Mar 2024; Up by 68% in value terms: Report
The share of the luxury segment (apartments priced ₹3 crore and above) in quarterly sales has increased from 5% in Q1 2022 to 11% in Q1 2024.
This marks the second consecutive quarter where sales have exceeded 74,000 units, following the record-breaking performance in Q4 2023 (75,591 units). The seven markets included Bengaluru, Delhi-NCR, Mumbai, Chennai, Hyderabad, Kolkata and Pune.
Also Read: Luxury housing sales record 75% growth in 2023 on the back of robust demand: Report
The quarterly sales were majorly contributed by the markets of Bengaluru, Mumbai, and Pune accounting for around 64% of the total sales. All these three cities saw robust launches that received good response from the buyers. While Bengaluru and Pune recorded highest sales in the ₹50 lakh to ₹75 lakh price segment, Mumbai saw maximum sales in the ₹1.5 crore to ₹3 crore price segment.
“The strategic launch of right products by the developers taking into cognizance the demand and market dynamics has led to this new growth phase in the residential market. Interestingly some of the branded developers are also planning to enter new markets and cities to expand their portfolio and market share,” said Samantak Das, chief economist and head of research and REIS, India, JLL.
Also Read: Delhi-NCR's real estate market: Here's why rich Indians are lapping up luxury properties
In the luxury segment, which comprises apartments priced at ₹3 crore and above, the share of quarterly sales has witnessed a significant increase, rising from 5% in Q1 2022 to 11% in Q1 2024. This growth is particularly pronounced in the Delhi NCR region, where in Q1 2024, around 44% of sales were in the luxury segment, fueled by a high number of launches and a strong buyer response, the report noted.
Affordable segment witnesses decline in share of sales
In contrast, the affordable segment, encompassing apartments priced below ₹50 lakh, has experienced a decline in its share of sales, dropping from 27% to 15%.
“However, it is worth noting that in the overall sales volume of the top seven cities, the ₹50 lakh to ₹75 lakh segment still retains its prominence and holds the largest share,” said Siva Krishnan, Senior Managing Director - Chennai & Coimbatore, and Head - Residential Services, India, JLL.
“These figures reflect a shifting trend in the real estate market, with buyers showing increased interest in the luxury segment. It underscores the need for developers to cater to evolving buyer preferences and adapt their offerings accordingly,” he added.
Residential prices move up.
Residential prices in the top seven cities of India have been on an upward trajectory in Q1 2024, with increases ranging from 3-15% year-on-year (Y-O-Y). The highest price increase was witnessed in Bengaluru and Delhi NCR to the tune of around 15%, the report said.
Due to the faster pace at which new launches are getting sold off, the availability of such inventory is extremely limited, resulting in a surge in prices. Additionally, developers are launching new phases of existing projects at elevated price points.
79,110 housing units launched in Q1 2024
This represents a Y-O-Y growth of 5%. Developers have readjusted their marketing strategies, leading to a noticeable surge in the number of high-value projects being launched, the report said.
Approximately 37% of these new launches were in the price bracket ₹1.5 crore and above, it said.
Unsold inventory increased by 1% Q-o-Q in Q1 2024
As of Q1 2024, unsold inventory across the seven cities increased by 1% on a Q-o-Q basis as launches outpaced sales. Mumbai, Bengaluru, and Hyderabad together account for 66% of the unsold stock. An assessment of years to sell (YTS) shows that the expected time to liquidate the stock has remained the same at 2.1 years in Q1 2024, it showed.
Outlook 2024
In 2024, residential sales are expected to touch around 3 lakh to 3.15 lakh units as the growth momentum currently seen is expected to be carried forward. Strategic land acquisitions at prime locations as well as along growth corridors in cities is expected to strengthen the supply inflow across cities.
Established developers are expected to enter new markets to fortify their portfolio and expand their market presence, the report said.
