Mumbai and Hyderabad led the charge in residential launches, collectively contributing around 43 per cent of the overall new units, according to the JLL report.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

India's residential real estate market has reached new heights in the first half of 2024, with a record launch of approximately 160,000 residential units, marking a 5 per cent increase over the previous record set in H1 2023.

This growth is attributed to a significant rise in the premium and luxury segments.

The premium residential segment, priced between Rs 3-5 crore, witnessed 170 per cent year-on-year (Y-o-Y) growth in new launches, while the luxury segment, with properties priced above Rs 5 crore, saw a 116 per cent increase.

This shift is a result of developers adapting to the changing preferences of buyers post-pandemic, focusing on high-value projects to meet demand.

Mumbai alone accounted for 23 per cent of the total, with 36,477 units, while Hyderabad followed with 31,005 units, representing 19 per cent. Other notable contributors included Bengaluru with 29,153 units (18 per cent) and Delhi NCR with 23,265 units (15 per cent).

H1 2024 also saw the highest-ever half-yearly residential sales, with around 155,000 units sold, a 22 per cent increase compared to the same period in 2023.

Bengaluru and Mumbai were the top performers, together accounting for 45 per cent of the total sales volume. Bengaluru sold 35,543 units (23 per cent), while Mumbai sold 33,744 units (22 per cent).

During the first half of 2024, the distribution of new launches varied across different ticket sizes. Projects priced between Rs 1-3 crore dominated the market, accounting for 44 per cent of the new launches.

However, the most significant growth was observed in the premium (Rs 3-5 crore) and luxury (above Rs 5 crore) segments, which grew by 169 per cent and 116 per cent Y-o-Y, respectively.

On the other hand, the mid-segment projects (priced between Rs 50 lakh -1 crore) experienced a 14 per cent decline in new launches during the same period.

Residential prices continued to climb across the top seven cities, with Y-o-Y increases ranging from 5 per cent to 20 per cent. Delhi NCR saw the highest price jump at 20 per cent, followed by Bengaluru with a 15 per cent increase. The high demand for new projects and limited under-construction inventory have driven this price growth.

Looking ahead, the outlook for 2024 remains positive, with projected residential sales expected to reach 315,000 to 320,000 units.

Established developers are poised to meet this demand by launching new projects in prime locations and growth corridors.

The trend of high-value projects is likely to continue, driven by favourable economic conditions and positive buyer sentiment.

Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, remarked, "The current year has witnessed an impressive increase in both launches and sales momentum, with approximately 54-57 per cent of last year's total volume already achieved in just half a year.

He added, "Interesting to note, sales momentum has successfully complemented the new launches with around 30 per cent of the H1 2024 sales (154,921 units) being contributed by projects that got launched during the last six months."

Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), Head - Residential Services, India, JLL, added, "There has been a notable surge in launches within the premium segment (priced between INR 3-5 crore) and luxury segment (priced above INR 5 crore) compared to other segments. In H1 2024, launches in the premium segment surged by 169 per cent Y-o-Y, followed by a 116 per cent Y-o-Y increase in luxury segment launches."

He added, "On the contrary, the mid-segment projects (priced between INR 50 lakh -1 crore) experienced a 14 per cent Y-o-Y decline during the same period. This speaks about developers' active response to the surge in demand for high value homes among the target clientele."