Kolkata: Driven by supply from established developers, stable economic conditions, and positive buyer sentiments,
residential sales in the first quarter (Jan-March) of 2024 in India experienced significant growth, according to JLL, a leading global commercial real
estate and investment management company.
The first quarter of 2024 (Q1 2024) achieved the highest residential sales to date, with a notable 20 percent increase compared to the same period in 2023,
selling a total of 74,486 units. This quarter marks the second consecutive quarter where sales have exceeded 74,000 units, following the record-breaking
performance in Q4 2023 (75,591 units).
These results establish a strong foundation for continued growth in the residential market, surpassing the sales
performance of 2023, the report published on Monday said.
“The quarterly sales were majorly contributed by the markets of Bengaluru, Mumbai, and Pune accounting for Rs64% of the total sales. All these three cities saw robust launches that received good response from the buyers. While Bengaluru and Pune recorded highest sales in the INR 50 lakh-75 lakh price segment, Mumbai saw maximum sales in the INR 1.5 crore-3 crore price segment.
The strategic launch of right products by the developers taking into cognizance the demand and market dynamics has led to this new growth phase in the residential market. Interestingly some of the branded developers are also planning to enter newer markets and cities to expand their portfolio and market share” said Chief Economist and Head of Research and REIS, India, JLL, Samantak Das.
There have been notable shifts in the sales distribution across different segments of the residential market. In the luxury segment, which comprises apartments priced at
Rs 3 crore and above, the share of quarterly sales has witnessed a significant increase, rising from 5 pc in Q1 2022 to 11 pc in Q1 2024. This growth was particularly pronounced in the Delhi NCR region, where in Q1 2024, around 44 pc of sales were in the luxury segment, fueled by a high number of launches and a strong buyer response. In contrast, the affordable segment, encompassing apartments priced below Rs 50 lakh, has experienced a decline in its share of sales, dropping from 27 pc to 15 pc.
” However, it is worth noting that in the overall sales volume of the top seven cities, the Rs 50 lakh-75 lakh segment still retains its prominence and holds the largest share,” said Siva Krishnan, Senior Managing Director – Chennai & Coimbatore, and Head – Residential Services, India, JLL. “These figures reflect a shifting trend in the real estate market, with buyers showing increased interest in the luxury segment. It underscores the need for developers to cater to evolving buyer preferences and adapt their offerings accordingly,” he added.
Residential prices in the top seven cities of India have been on an upward trajectory in Q1 2024, with increases ranging from 3-15 pc Year-on-Year (Y-O-Y). The highest price increase was witnessed in Bengaluru and Delhi NCR to the tune of Rs15 pc. Due to the faster pace at which quality launches are getting sold off, the availability of such inventory is extremely limited, resulting in a surge in prices. Additionally, developers are launching new phases of existing projects at elevated price points.
The first quarter of 2024 witnessed a record-breaking number of residential launches with 79,110 units, surpassing the previous Q1 numbers. This represents a Y-O-Y growth of 5 pc. Developers have readjusted their marketing strategies, leading to a noticeable surge in the number of high-value projects being launched. Approximately 37pc of these new launches were in the price bracket INR 1.5 crore and above.
As of Q1 2024, unsold inventory across the seven cities increased by 1 pc on a Q-o-Q basis as launches outpaced sales. Mumbai, Bengaluru, and Hyderabad together account for 66 pc of the unsold stock. An assessment of years to sell (YTS) shows that the expected time to liquidate the stock has remained the same at 2.1 years in Q1 2024.
