A surge in property prices of up to 30 per cent dampened India’s residential sales growth momentum in 2024, particularly in the mid and affordable housing segments. According to data released by real estate consultancy firm Anarock, housing sales in the top seven cities recorded a 4 per cent decline, with approximately 4,59,650 units sold in 2024 compared to 4,76,530 units in 2023.
However, the overall sales value of housing units saw a 16 per cent yearly jump – from approx. Rs 4.88 lakh Cr in 2023 to approx. Rs 5.68 lakh Cr in 2024.
Mumbai Metropolitan Region (MMR) witnessed the highest sales of approx. 1,55,335 units in 2024, registering a 1 per cent yearly rise. Pune followed with approx. 81,090 units sold. The two western markets together led residential sales in 2024.
New launches in the top 7 cities saw a 7 per cent annual decline – from approx. 4,45,770 units in 2023 to approx. 4,12,520 units in 2024. MMR and Bengaluru saw the maximum new launches, together accounting for an almost 50 per cent of the new supply in the year.
“Apart from the dampening effect of general and assembly elections, project approvals slowed down markedly; this inevitably impacted new housing supply. While sales also saw a marginal decline when compared to 2023, this was offset by a 16 per cent jump in the overall sales value, thanks to average price appreciation and increasing unit sizes,” said Anuj Puri, Chairman - ANAROCK Group. Compared to 2023, 2024 saw a 21 per cent rise in the average price in the top 7 cities.
Puri added that 2025 is unlikely to match this steep growth in prices. “Average residential prices hikes will stabilize in the coming year, though there will be steady growth amid increased input costs and high demand. 2025 will also see generous new supply infusions by listed developers, who have significant inventory lined up,” he said
Among budget categories, luxury housing demand and new supply increased exponentially in 2024. The new luxury supply addition across the top 7 cities rose by 24 per cent in 2024 against 2023.
Multiple industry experts highlighted that a steep hike in property prices has made it difficult for middle-income buyers to afford housing units. “In many cities, housing prices have almost doubled over the last three years, putting them out of reach for a significant portion of buyers. Reputed developers are also hesitant to increase supply in this segment. Measures such as a reduction in interest rates and incentives like reduced stamp duty could help revive this segment,” said the CEO of an NCR-based real estate developer.
While MMR (up 1 per cent) and Bengaluru (up 2 per cent) recorded increase in sales, it fell sharply in Kolkata (20 per cent) and Chennai (11 per cent). Sales fell 5 per cent in Hyderabad, 6 per cent each in Pune and Delhi NCR.
On an annual basis, housing prices rose between 13-30 per cent across the top 7 cities, primarily due to increased input costs and strong homebuyer demand. Delhi-NCR recorded the highest yearly jump of 30 per cent in average residential price – from Rs 5,800 per sq. ft. in 2023 to nearly Rs 7,550 per sq. ft. in 2024. The top 7 cities together saw a 21 per cent yearly jump in average residential price – from Rs 7,080 per sq. ft. in Q4 2023 to over Rs 8,590 per sq. ft. in Q4 2024.