Housing Sales Up 68% So Far In 2024 On Higher Volumes, Price Rise: Report

Housing sales rose 68% in value terms to nearly Rs 1.11 lakh crore during the January-March period across major cities on higher volumes as well as price appreciation, according to PropTiger. In its quarterly report 'Real Insight Residential– January–March 2024', real estate brokerage firm PropTiger.com said that housing sales in value terms rose to Rs 1,10,880 crore in the January-March period of this calendar year from Rs 66,155 crore in the year-ago period.

Vikas Wadhawan,  Group Chief Financial Officer of REA India and Business Head of PropTiger.com, said, "Growth in housing sales both in volume and value terms augurs well for the overall economy as more than 200 ancillary industries, including cement and steel, are dependent on the real estate sector."

In terms of area, housing sales surged 63% to 162 million square feet in the first quarter of this calendar year from 99 million square feet in the corresponding period of the previous year.

Housing sales grew by 41% to 1,20,640 units during January-March 2024 from 85,840 units in the corresponding period of the previous year.

"India’s housing market is having a dream run. Sales of residential properties in the top eight primary markets have been growing at a rapid pace, buoyed by robust growth, steadfast mortgage rates, and an escalating desire for homeownership," Wadhawan said.

As investor confidence gradually resurfaces, coupled with robust demand from Non-Resident Indians, he said the trajectory of housing demand appears poised for solid growth, barring any unforeseen spikes in prices.

PropTiger said the sales value has been derived from multiplying the total number of units sold by the weighted average price and further by the weighted average size of the properties.

Housing sales in Ahmedabad more than doubled to Rs 9,090 crore in January-March 2024 from 3,954 crore in the year-ago period.

Bengaluru saw a 52% growth in housing sales to Rs 11,310 crore from Rs 7,428 crore, while Chennai witnessed a 52% increase in sales to Rs 3,290 crore from Rs 2,697 crore.

Sales of residential properties in Delhi-NCR jumped more than three times to Rs 12,120 crore from Rs 3,476 crore.

In Hyderabad, the housing sales more than doubled to Rs 23,580 crore from Rs 9,711 crore.

Housing sales in Kolkata grew 59% to Rs 2,000 crore from Rs 1,260 crore.

Mumbai Metropolitan Region saw a 31% growth in housing sales to Rs 34,340 crore from Rs 26,167 crore.

Housing sales in Pune increased to Rs 15,150 crore in January-March this year from Rs 11,462 crore in the year-ago period.

Ankita Sood, Head of Research, PropTiger.com and Housing.com, said, "Notably, major cities like Mumbai, Hyderabad, Delhi NCR, and Pune collectively accounted for 76% of the total transaction value of Rs 1.11 lakh crore. This surge not only signifies heightened demand but also reflects a remarkable 15–20% uptick in property prices within key business districts."

Sood expected the momentum to continue in the coming two quarters, driven by economic growth and strong demand.