Mumbai and Hyderabad Lead in New Home Launches in 2024
In the first half of 2024, India’s residential real estate market reached new heights with a record launch of approximately 160,000 residential units, marking a 5% increase over the previous record set in H1 2023. This growth is driven by a significant rise in the premium and luxury segments.
Key Highlights
Mumbai and Hyderabad were the top contributors, collectively accounting for 43% of the new launches. Mumbai alone accounted for 23% with 36,477 units, while Hyderabad followed with 31,005 units, representing 19%.
Other notable contributors included Bengaluru with 29,153 units (18%) and Delhi NCR with 23,265 units (15%).
Growth in Premium and Luxury Segments
The premium residential segment, priced between Rs 3-5 crore, saw a 170% year-on-year growth in new launches. The luxury segment, with properties priced above Rs 5 crore, experienced a 116% increase. This shift is due to developers adapting to changing buyer preferences post-pandemic, focusing on high-value projects.
Record Residential Sales
H1 2024 also saw the highest-ever half-yearly residential sales, with around 155,000 units sold, a 22% increase compared to the same period in 2023. Bengaluru and Mumbai were the top performers, together accounting for 45% of the total sales volume.
Bengaluru sold 35,543 units (23%), while Mumbai sold 33,744 units (22%).
Price Increases
Residential prices continued to climb across the top seven cities, with year-on-year increases ranging from 5% to 20%. Delhi NCR saw the highest price jump at 20%, followed by Bengaluru with a 15% increase. The high demand for new projects and limited under-construction inventory have driven this price growth.
Future Outlook
Looking ahead, the outlook for 2024 remains positive, with projected residential sales expected to reach 315,000 to 320,000 units. Established developers are poised to meet this demand by launching new projects in prime locations and growth corridors. The trend of high-value projects is likely to continue, driven by favorable economic conditions and positive buyer sentiment.
Expert Opinions
Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, remarked, “The current year has witnessed an impressive increase in both launches and sales momentum, with approximately 54-57% of last year’s total volume already achieved in just half a year.”
Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), Head – Residential Services, India, JLL, added, “There has been a notable surge in launches within the premium segment (priced between INR 3-5 crore) and luxury segment (priced above INR 5 crore) compared to other segments. In H1 2024, launches in the premium segment surged by 169% Y-o-Y, followed by a 116% Y-o-Y increase in luxury segment launches.”
