Introduction
The Indian housing market continues its bull run in the first quarter of this year. With prices steadily increasing and demand remaining strong, experts predict that this trend will likely continue throughout the year due to various factors, such as low interest rates and a growing population, with prices increasing steadily across major cities.
Table of Contents
- Indian Housing Market Rapidly Continued in Q1 of the Year
- Some Cities Continued to Cross the Lakh Mark
- Puri Also Mentioned That the Real Estate Market
- New Launches in Metropolitan Cities
Home for Sale: Housing Sales in Top Cities Recorded a 14 Percent Year-over-Year Rise in Q1 2024. Most cities started with more units, further driving the growth of the real estate sector. The demand for residential properties remains strong, driven by low-interest rates and government incentives for homebuyers.
Indian Housing Market Rapidly Continued in Q1 of the Year
Quarterly housing sales are at an all-time high, with approx. 1,30,170 units sold in Q1 2024 across the top cities in India. This represents a 15% increase from the previous quarter and a 25% increase from the same period last year.
The surge in demand can be attributed to low interest rates and government incentives for first-time homebuyers. Additionally, the ongoing trend of remote work has led many individuals to prioritize homeownership, further driving the housing market boom. As supply struggles to keep up with demand, prices are expected to continue rising in the coming months.
Experts predict that the housing market will remain robust shortly as economic conditions and buyer sentiment remain favorable. However, concerns about affordability and the potential overheating of the market are beginning to emerge among industry analysts.
Some Cities Continued to Cross the Lakh Mark
Anarac Group Chairman Anuj Puri said, “MMR (Mumbai Metropolitan Region) and Pune accounted for over 51 per cent of the total sales in all cities. MMR registered a 24 per cent YoY. This growth can be attributed to various factors such as infrastructure development, affordable housing options, and improved connectivity.
The real estate market in these regions is expected to continue thriving in the coming years. The demand for residential and commercial properties in MMR and Pune is expected to remain strong due to the growing job opportunities and overall economic growth in these regions.
Investors are likely to continue showing interest in these markets, further driving the growth of the real estate sector. New launches in the key cities are crossing the lakh mark. But increased from 1,09,570 units in Q1 2023 to over 1,10,865 units in Q1 2024. It has grown by just one percent year-on-year.
Puri Also Mentioned That the Real Estate Market
Notably, MMR and Hyderabad saw the maximum new supplys. Accounting for 51 per cent of the total new launches across the top cities,” says Puri. Puri also mentioned that the real estate market in these cities is showing signs of recovery. With developers focusing on affordable housing projects to cater to increasing demand. Additionally, the growth in new supply indicates a positive outlook for the real estate sector in these regions.
Hyderabad has seen a 57 per cent year-on-year increase in new supply in Q1 2024. But MMR has seen a nine per cent decline in its new supply this year. The report noted that sales of houses priced at Rs 1.5 crore and above have been the highest in the last decade as demand for higher prices increased significantly.
New Launches in Metropolitan Cities
The top cities recorded new launches of around 1,10,865 units in Q1 2024, compared to 1,09,570 units in Q1 2023. This indicates a slight increase in new launches year-on-year, showcasing continued growth in the real estate sector. The cities with the highest number of new launches were Mumbai, Bangalore, and Delhi, NCR.
Increasing by just one per cent over the previous year’s corresponding period. This slight growth can be attributed to various factors, such as economic conditions and consumer behavior. It will be interesting to see if this trend continues in the coming months.
Home for Sale: 83 % of the Quarterly Supply
In Q1 2024, housing sales in the top cities of India witnessed a 14% yearly rise compared to the same period in 2023. Approximately 130,170 units were sold during this quarter across cities like Mumbai Metropolitan Region (MMR), Pune, Hyderabad, Bengaluru, National Capital Region (NCR), Chennai, and Kolkata.
Notably, MMR and Pune accounted for over 51% of the total sales, with MMR recording a 24% yearly jump and Pune witnessing an over 15% yearly rise. The new launches of housing units remained above the one lakh mark. But there was only a 1% yearly increase in new supply.
Conclusion
Housing Sales in key Cities Record 14 Per cent Yearly Rise in Q1 2024. This increase in housing sales is attributed to low interest rates, high demand, and limited inventory in these urban areas. Analysts predict continued growth in the real estate market throughout the year. The rise in housing sales has also been driven by increased remote work opportunities, prompting more individuals to relocate to major cities. The real estate market is expected to remain strong as the economy recovers. For more information, visit openplot.
Also read: Godrej Properties Sells Flats Worth ₹2,690 crore in Mumbai.