Housing Sales Soar By 20% In India's Top Cities Amidst Robust Market Momentum
Housing sales in India's prominent urban centres, including Delhi NCR, Mumbai, Bengaluru, Hyderabad, Chennai, and Pune, have witnessed a remarkable surge of 20 per cent during the first quarter of 2024.
According to data provided by NoBroker, approximately 1,47,000 housing units have been sold during this period, indicating a robust revival in the real estate sector.
This substantial growth underscores the resilience and potential of the market, driven by ongoing developments and investments in the property segment. Despite challenges posed by escalating prices, the Indian real estate sector has experienced a promising start in 2024, with a surge in demand for residential properties. This momentum is expected to continue in the coming months, with numerous new project launches underway and many more in the pipeline.
The recent decision by the Reserve Bank of India (RBI) to maintain the repo rate unchanged is anticipated to create a favourable environment for homebuyers, further bolstering market sentiment.
Amit Agarwal, CEO & Co-founder of NoBroker.com, commented on the trends, stating, “The average rent increase has been higher than average salary increments across cities which has prompted potential home buyers to take the plunge. While rents may stabilise with more supply coming in gradually, they will not come down.”
The current year has witnessed a remarkable start, marked by heightened demand and a surge in property transactions. The growth trajectory of the country’s economy, coupled with a controlled economic policy environment, has instilled confidence in buyers to invest in physical assets like real estate. “Although property prices continue to escalate, we anticipate robust sales, indicative of buoyant homebuying sentiment and buyers’ persistence in owning a physical asset,” Agarwal added.
A notable trend emerging among homebuyers is the “K-type” growth trajectory, where individuals previously targeting properties within the Rs 80 lakh to Rs 1 crore range are now opting for more upscale options above the Rs 1 crore mark. Conversely, those initially considering homes between Rs 60 lakh and Rs 80 lakh are opting for more affordable choices, reflecting a shift in housing preferences.
Amidst surging demand, certain projects are being absorbed within a day of their launch, emphasising the rapid pace of transactions in the market. Properties nearing completion are witnessing a notable uptick in prices, intensifying buyer interest to secure purchases before further escalations.
Given the strong residential demand and the surge in input costs, sustained pressure on property prices is expected, leading to further upward revisions. Additionally, the easing of retail inflation in India has the potential to positively impact real estate buyers by enhancing affordability and improving borrowing conditions.
NoBroker’s annual real estate report for 2023 highlighted the enduring confidence of investors in real estate as a prime investment avenue, with Delhi-NCR and Bengaluru accounting for 45 per cent of total sales. Bengaluru, in particular, is expected to witness a yearly jump of over 25 per cent compared to 2023.
