Housing demand in 2024 at 12-year high, sales up 7% at over 3.5 lakh units: Knight Frank

Housing sales rose 7 per cent annually in 2024 across eight major cities to reach 12-year high at 3,50,613 units on better demand for premium homes amid stable mortgage rates and strong economic growth, according to Knight Frank. Last month, real estate consultant Anarock, however, had reported that housing sales declined 4 per cent in 2024 to nearly 4.6 lakh units across seven major cities.

In a virtual conference on Tuesday, property consultant Knight Frank India Chairman and Managing Director Shishir Baijal noted that the Indian housing market saw a strong demand for homes priced between Rs 2-5 crore each.

Hyderabad and Pune reached an all-time high and Mumbai recorded a 13-year peak.

"The higher ticket size segments drove momentum despite concerns of overheating, with the Rs 2- 5 crore category witnessing an 85 per cent annual growth, although the sub-Rs 50 lakh and Rs 50 lakh-1 crore segments saw declining or fatigued sales," the consultant said.

Baijal said the residential market has had a tremendous run since 2020 with 2024 sales volumes culminating in a 12-year high.

"The premiumisation trend has intensified as the market continues to shift toward the higher ticket size with products much better suited to the increasing lifestyle needs of the demanding consumer," he added.

Baijal said the overall improvement in market health metrics, stable economic and interest rate scenario along with the still strong momentum hold enough tailwinds for the market as it steps into the new year.

Among eight cities, Delhi-NCR was the only city which registered a decline in sales volumes during the last calendar year compared to 2023.

Housing sales in Mumbai increased 11 per cent annually in 2024 to 96,187 units.

Delhi-NCR saw a modest 4 per cent decline in sales to 57,654 units last year.

The sales of residential properties in Bengaluru rose 2 per cent in 2024 to 55,362 units.

Pune witnessed a 6 per cent increase in sales to 52,346 units during 2024.

Housing sales in Hyderabad grew 12 per cent to 36,974 Units in 2024.

Housing sales in Ahmedabad increased 15 per cent to 18,462 units in 2024.

In Kolkata, the sales of residential properties went up 16 per cent last year to 17,389 units.
Housing sales in Chennai rose 9 per cent in 2024 to 16,238 units.

Gulam Zia, Senior Executive Director, Research, Advisory, Infrastructure, and Valuation at Knight Frank India, said "With demand scaling to record volumes alongside steady price growth in 2024, momentum in the residential market remains robust. While there are concerns about a deceleration in segments under Rs 1 crore, the government's steadfast commitment to affordable housing, coupled with increasing private sector interest, should help stabilise volumes in this category." At the same time, he said the trend of premiumisation continues to shape the market as homebuyers increasingly seek properties that reflect an upgraded lifestyle, offering more space, enhanced amenities, and differentiated living experiences.

"Developers have adeptly aligned with these evolving preferences, catering to both affordability and aspirations for a better quality of life," Zia said.