The Indian real estate market experienced a mixed bag of performance in 2024, with housing sales in the top seven cities dipping by 4%, according to ANAROCK’s data. While sales and launches saw a decline, average property prices surged significantly, reflecting strong buyer demand despite economic and political challenges.
In this blog, we’ll explore the key trends, challenges, and outlook for 2025 in India’s top real estate markets, including Mumbai Metropolitan Region (MMR), Delhi NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata.
1. Housing Sales Trends in 2024
Housing sales in India’s top seven cities dropped to 4.59 lakh units in 2024, down from 4.76 lakh units in 2023.
Key Highlights:
- MMR and Bengaluru: Only these cities reported sales growth in 2024.
- MMR: 1% increase (1.55 lakh units).
- Bengaluru: 2% increase (65,230 units).
- Delhi NCR and Pune: Both saw a 6% decline in sales.
- Kolkata: Witnessed the steepest fall of 20%.
Why Sales Declined:
- Higher Property Prices: A 21% rise in average property prices increased affordability challenges.
- Elections: General and state elections slowed down market momentum.
- Economic Factors: Increased input costs further strained buyer budgets.
2. Housing Launch Trends in 2024
New project launches in the top cities fell by 7%, with 4.12 lakh units launched in 2024 compared to 4.45 lakh units in 2023.
City-Wise Performance:
- Delhi NCR: Reported a 44% rise in launches, showcasing resilience.
- Chennai: Recorded a modest 4% increase.
- Pune and Hyderabad: Experienced significant declines of 28% and 24%, respectively.
- MMR and Kolkata: Both cities saw a 15% fall in launches.
3. Rising Housing Prices
Housing prices surged across all seven cities, rising between 13% and 30% annually.
Key Statistics:
- Delhi NCR: Recorded the highest price increase at 30%, rising from ₹5,800 per sq ft in 2023 to ₹7,550 per sq ft in 2024.
- National Average: Average residential price increased from ₹7,080 per sq ft in Q4 2023 to ₹8,590 per sq ft in Q4 2024, a 21% rise.
Why Prices Increased:
- Rising input costs for materials and labor.
- Consistently high demand in urban markets.
- Larger unit sizes driving up overall ticket sizes.
4. Sales Value: A Positive Trend
Despite a decline in unit sales, the overall sales value in 2024 increased by 16%, from ₹4.88 lakh crore in 2023 to ₹5.68 lakh crore in 2024.
Reason for Growth:
- Price appreciation in key markets.
- Increase in demand for larger, premium housing units.
5. Outlook for 2025
According to Anuj Puri, Chairman of ANAROCK Group, the Indian housing sector in 2025 will witness a steady but more stabilized growth trajectory.
Expected Trends:
- Price Stabilization: After the sharp hikes of 2024, residential price growth is expected to moderate.
- Increased New Launches: Developers are likely to introduce more inventory as project approvals accelerate.
- Sustained Demand: High demand and rising input costs will maintain steady growth, particularly in the premium segment.
Challenges to Watch:
- Delayed project approvals may continue to hamper supply.
- Affordability issues due to higher property prices could limit sales growth.
Conclusion
The Indian housing market in 2024 reflected resilience amidst economic and political headwinds. While sales dipped marginally, rising property prices and higher sales values underscored strong buyer demand. Looking ahead, 2025 is expected to bring a balanced growth phase, with price stabilization and an infusion of new supply providing opportunities for both buyers and developers.
Stay updated on the latest real estate trends and insights at RealEstateIndia.in, your trusted source for market updates.