Stepping into 2024, the Indian residential market has sustained its momentum with gross sales rising at 9 per cent YoY in Q1 2024.
The surge in housing gross sales was outstanding 259 per cent YoY in the above Rs 1 crore section, says a Knight Frank report
India’s residential market in 2024 to date has witnessed a sustained momentum with gross sales rising at 9 per cent 12 months-on-12 months (YoY) throughout January-March 2024, in accordance with a report by Knight Frank. The surge in gross sales was outstanding 259 per cent YoY in the housing section above Rs 1 crore.
“Sales volumes in the primary market have grown at an annualised rate of 29 per cent since 2020, that culminated in a 10-year high in 2023. India maintained its position as the fastest-growing major economy, with a steady outlook on interest rates by the close of 2023. Stepping into 2024 the Indian residential market has sustained its momentum with sales growing at 9 per cent YoY in Q1 2024,” Knight Frank mentioned in the report.
Mumbai witnessed the best gross sales quantity and YoY development, with 23,743 models bought in Q1 2024, marking a 17 per cent improve from the previous 12 months. The surge was predominantly pushed by a outstanding 259 per cent rise in the gross sales of models priced above Rs 1 crore in comparison with the corresponding interval in the earlier 12 months (Q1 2023), it mentioned.
Sales volumes in Hyderabad grew by 15 per cent YoY, adopted by Pune at 14 per cent YoY through the quarter, the report added.
In phrases of launch, a complete of 93,254 new residential models have been launched in Q1 2024 registering a development of seven per cent YoY. Kolkata skilled essentially the most vital development in models launched, with a YoY improve of 89 per cent, reaching a document excessive for the market with 6,021 models launched, it mentioned.
“Sales were prominently skewed towards the Rs 10 million (Rs 1 crore) price segment. The current QTS level of 5.9 quarters which is significantly better than the 6.7 level a year ago, signifies that the overall market traction has improved despite the increase in unsold inventory levels,” in accordance with the report.
The basic construction of the market has undergone vital adjustments, with the upper ticket sizes accounting for almost all of gross sales, whereas volumes in the Rs 50 lakh section have decelerated constantly.
Houses Between Rs 50 Lakh and Rs 1 Crore
Sales in the Rs 5-10 million section witnessed a drop of 6 per cent YoY in Q1 2024, as homebuyers’ focus shifted to the upper priced class through the quarter.
“The drop in this segment’s sales can be viewed as a normal correction in a long-term upward trend. Bengaluru (6,065), Mumbai (5,815), and Pune (5,399) together accounted for more than 60 per cent of sales in the ticket size between Rs 5 million to Rs 10 million. The QTS levels for this segment stand at 4.9 quarters,” it mentioned.
Houses Below Rs 50 Lakh
The share of gross sales in the Rs 5 million (Rs 50 lakhs) and beneath ticket dimension has additionally declined by 10 per cent YoY with gross sales of 25,714 models in Q1 2023 to 23,026 models in Q3 2023. The present gross sales share of 27 per cent is a far cry from the 41 per cent ranges in Q1 2022, in accordance with the report.
“The combined impact of rising prices, higher home loan rates, and the relatively adverse effects of the pandemic in this sector persisted, suppressing demand,” it mentioned.
