India's housing market has experienced significant growth in 2024, demonstrating resilience and strength despite the challenges faced by the global economy. According to recent reports, over 2.3 lakh homes have been sold across the country in the first nine months, amounting to a staggering US$ 44.85 billion (Rs. 3,80,000 crore). This surge in sales has been primarily driven by the rising demand for premium housing projects, particularly in Delhi NCR, where more affluent buyers are seeking larger, more expensive properties.

One of the key trends in this growth is the shift toward more spacious and upscale homes. As demand for larger homes continues to increase, the average sale price has risen significantly, reaching US$ 193,578.85 (Rs. 1.64 crore) per apartment. This reflects a clear shift towards more luxurious living spaces, with buyers looking for greater comfort and more square footage. The Delhi NCR region has been at the forefront of this trend, driving the highest sales in terms of total value.

While Delhi NCR led in terms of sales value, Bengaluru emerged as the leader in terms of area sold. Despite Mumbai having higher per-square-foot prices, Bengaluru’s larger homes played a crucial role in achieving the higher volume of space sold. Bengaluru’s real estate market continues to be a favorite among buyers seeking more space at relatively more affordable prices compared to other metropolitan cities like Mumbai.

The Indian housing market is on track to set a record by the end of the FY24 financial year, with total sales expected to reach US$ 60.20 billion (Rs. 5,10,000 crore). This growth is driven not only by the rise in premium housing demand but also by an increase in overall sales volume. Over the course of the year, 3 lakh homes, totaling a massive 485 million square feet, are expected to be sold across the top seven cities of India. This marks a substantial increase in the market’s overall activity, signaling strong demand and interest in residential properties.

During the first three quarters of FY24, the market saw impressive sales figures, with more than US$ 11.80 billion (Rs. 1,00,000 crore) worth of homes being sold each quarter. Each period also saw more than 115 million square feet sold, a testament to the increasing appetite for real estate across the country. Notably, Delhi NCR took the lead in sales volume, with a remarkable 39,322 units sold, valued at US$ 14.16 billion (Rs. 1,20,000 crore). This is a significant achievement, as it has already surpassed last year’s full-year sales.

Meanwhile, Mumbai followed in terms of sales value, although it was Bengaluru that ranked second in terms of area sold. This trend highlights the diverse nature of the housing market across India, with different cities leading in different segments. Delhi NCR’s dominance in high-value transactions and Bengaluru’s larger homes illustrate the varied preferences of buyers in major urban areas.

The ongoing festive season is expected to continue driving strong demand in the housing market, with the fourth quarter potentially matching or even exceeding the sales figures from earlier quarters. If trends hold, the total sales for FY24 could reach approximately 305,000 units sold, marking a landmark achievement for India’s housing sector. With this robust demand expected to continue into the next financial year, capital values in the housing market are expected to remain high, further strengthening the sector as we move into FY25.

This growth in housing demand is not just about the number of units sold but also about the broader impact on the real estate sector. Higher sales figures reflect rising capital values, which, in turn, drive further investments in the housing sector. As premium housing projects continue to gain momentum, developers are more likely to focus on creating luxury homes that meet the rising demand from the affluent population.

The Indian housing market’s resilience in 2024 is also a reflection of the broader economic recovery taking place in the country. Despite global challenges, India’s real estate sector has shown remarkable growth, positioning itself as a major player in the global housing market. With continued government support, favorable policies, and a robust demand for both luxury and mid-range housing, India’s housing market is set to remain a key contributor to the country’s economic growth in the coming years.

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