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India's housing sales surged to a 12-year high in 2024, growing 7% year-on-year across eight major cities to 350,613 units, fueled by strong demand for premium homes, according to Knight Frank. Mumbai led with an 11% increase, while Hyderabad and Pune also set record highs. However, the affordable segment under INR 50 lakh faced challenges, indicating a shift in buyer preferences towards larger, well-amenitized properties. While Knight Frank highlights robust sales, Anarock reports a 4% decline across seven cities, reflecting market complexities. As the focus shifts to premium housing, balancing this demand with affordable solutions will be crucial for sustained growth in 2025.
Housing sales in India saw a notable increase in 2024, rising by 7% year-on-year across eight major cities, reaching a total of 350,613 units. This marks the highest sales volume in 12 years, driven by strong demand for premium homes and a stable economic environment, according to a report from Knight Frank. However, contrasting data from Anarock indicates a 4% decline in housing sales across seven major cities, highlighting the complexity of the current real estate landscape. Advertisement
The demand for homes priced between INR 2-5 crore has surged, with cities like Hyderabad and Pune achieving record sales. Mumbai also experienced a significant uptick, recording its highest sales figures in 13 years. Shishir Baijal, Chairman and Managing Director of Knight Frank India, pointed out that while the luxury segment thrived, more affordable segments, particularly homes priced under INR 50 lakh, faced challenges, indicating a shift in buyer preferences.
Baijal observed that the premiumisation trend is reshaping the market, as buyers increasingly seek properties that align with their evolving lifestyle needs. This shift is characterized by a desire for larger homes with better amenities, reflecting a broader trend in consumer behavior. The overall market conditions, including stable mortgage rates and strong economic growth, have contributed to this momentum.
Among the major cities, Delhi-NCR was the only region to see a decline in sales, dropping 4% to 57,654 units. In contrast, Mumbai's housing sales rose by 11% to 96,187 units. Other cities also showed positive trends: Bengaluru's sales grew by 2% to 55,362 units, Pune saw a 6% increase to 52,346 units, and Hyderabad experienced a 12% rise to 36,974 units. Ahmedabad and Kolkata also reported significant gains, with increases of 15% and 16%, respectively.
Gulam Zia, Senior Executive Director at Knight Frank India, emphasized that while there are concerns about a slowdown in the lower price segments, the government's commitment to affordable housing and rising private sector interest are likely to stabilize this market.Zia observed that the demand for quality housing continues to rise, prompting developers to respond with offerings that balance affordability and improved living standards.
As the real estate market evolves, it is essential for stakeholders to adapt to these changing dynamics. The focus on premium properties indicates a shift in buyer demographics, with more individuals seeking homes that reflect their aspirations. This trend presents both challenges and opportunities for developers, who must balance the demand for luxury with the need for affordable housing solutions.
In conclusion, while the Indian housing market is witnessing a shift towards higher-value properties, the overall health of the market remains strong. With continued economic growth and a favorable interest rate environment, the outlook for housing sales in 2025 appears promising, provided that developers can meet the diverse needs of homebuyers across various price segments.
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