Year-ender 2024: Seven cities' housing sales to hit 3.05L units
What's the story
Housing sales across seven major Indian cities, including Delhi-NCR, Mumbai, and Bengaluru, are likely to touch 3.05 lakh units by the end of 2024. Driven by higher demand, the sales are estimated to be worth ₹5.10 lakh crore. The sales will span an area of around 485 million square feet, a report by JLL India stated.
Market leaders
Delhi-NCR leads in housing sales value and area
The first nine months of 2024 saw housing sales peak, with some 2.30 lakh homes sold across these cities. This translated to ₹3.8 lakh crore and 363.2 million square feet of residential space. The fourth quarter's festive season is likely to keep housing demand strong, possibly matching or exceeding the previous three quarters' average of over 75,000 units.
Premium preference
Delhi-NCR dominates premium housing market
Delhi-NCR dominates both in terms of sales value and area sold, suggesting a preference for larger and premium homes in the region. Between January-September 2024, almost 90 million square feet worth over ₹1.20 lakh crore were sold in NCR alone. Mumbai comes second to Delhi-NCR in terms of home value sold, while Bengaluru comes second in terms of area sold.
Economic impact
Robust housing market expected to boost job creation
The robust housing market is likely to drive job creation in construction and related sectors. Record sales could also impact government policies and private sector investments in urban infrastructure. Samantak Das, Chief Economist and Head of Research and REIS at JLL India, observed that "close to ₹3.80 lakh crore worth of homes have already been sold across the top seven cities in the first nine months of 2024."
Future supply
Real estate developers acquire strategic land parcels
Real estate developers have been buying strategic land parcels for future residential developments across metro cities, which points to a strong supply for 2025. Siva Krishnan, Senior Managing Director (Chennai & Coimbatore) and Head - Residential Services at JLL India, said that "demand is expected to remain strong too," which will likely push up capital values and overall home values sold.