A Look-Back at 2024: The Year of Upgraded Indian Living

By: Jasna Bedi, CMO, BCD Group

Jasna Bedi is a seasoned marketing, advertising, and public relations professional with expertise in transforming client visions into reality. With experience working with renowned brands such as Roberto Cavalli, Boca Do Lobo, and Missoni, she specializes in creating multifunctional, aesthetically pleasing, and efficient interior spaces. Holding an MBA in Human Resources, Jasna has previously worked with Ogilvy & Mather and Perfect Relations, contributing to major national dailies.
2024 has been a wonderful year for India's housing sector. Its impressive growth was mainly propelled by rising disposable incomes, favorable government policies, and the growing aspiration of homeownership among Indians. These factors also drove the demand for residential spaces across all price points.

Here are some key factors that have transformed the country’s housing sector in 2024. Record Sales and Launches

In H1 2024, the top seven Indian cities recorded the highest-ever residential sales. According to JLL, 155,000 housing units were sold throughout H1 2024, registering a YoY increase of 22%. Moreover, almost 54-57% of last year's annual sales volume was captured only in the first six months of 2024.

Maximum Growth Seen in the Luxury Housing Segment

During H12024, new premium housing launches priced between INR 3 crores and INR 5 crores saw a 170% YOY growth. Luxury units' sales in the first nine months of 2024 reached 12,625 units, as opposed to 9,160 units in the same period last year, as per a CBRE report. Over 90% of the sales came from Hyderabad, Delhi-NCR, and Mumbai.

Price Rise—A Blessing for Investors

Residential property prices in India's top seven cities exhibited an upward momentum during Q2 2024. YoY price growth ranged from 5%-20%, with Delhi-NCR leading the pack at a substantial 20%.
Bengaluru followed closely with a 15% appreciation, primarily driven by robust demand in
high-potential micro-markets like Whitefield and North Bengaluru. Limited inventory and ongoing infrastructure developments in these areas further pushed the prices upward. Home prices in Tier II and III cities also went up by about 10-15%. Mega infrastructural developments and reverse migration catapulted this trend.

South India's Thriving Housing Market

South India's residential sector witnessed remarkable success in 2024. Bengaluru, Hyderabad, and Chennai have benefited from rapid urbanization, high housing demand, and massive infrastructural developments.

Hyderabad's new launches increased by 57% year-over-year in Q1, with 22,960 new units launched. Of these,33% were priced over INR1.5 crore. Bengaluru launched 16,485 new units, marking a 22%rise over the same quarter in 2023. The majority of recent launches fall within the mid- and premium price ranges. Chennai also registered a growth of 14%YoY with most launches falling under mid and premium categories. The demand for residential plots and villas in these cities has also increased.
According to an ANAROCK-FICCI survey,20% of home buyers in Bengaluru, Chennai, and Hyderabad seek residential plots to enjoy more customization options compared to ready-to-move apartments.

Tier II and III Cities Gaining Momentum

The rise of Tier II and III cities was the highlight of 2024. India’s remote, developing cities that were not so attractive earlier because of a lack of affordability and low infrastructure are now becoming more appealing because of mega infrastructure projects and lifestyle improvements. Developers are capitalizing on this trend by launching projects tailored to meet the growing demand for quality housing in such cities. Government initiatives have also played a significant role. Improved infrastructure, such as new roads, trains, and transit systems, has increased these cities' appeal to potential buyers and investors.

Challenges & Opportunities

India's affordable residential sector has encountered several challenges this year. Rising land costs and construction prices have put pressure on developers’ margins, thus making it difficult to deliver budget-friendly homes. This challenge mainly persists in metro cities, where affordability is a major issue for the middle class. To address rising costs, many developers are now turning to modular construction techniques and exploring government-backed schemes to make affordable housing more viable. The Union Budget 2024’s goal to build three crore houses for low and middle-income families under Pradhan Mantri Awas Yojana has given a much-needed boost to affordable housing in 2025.

The Road Ahead

India's housing segment will likely sustain its pace in 2025. Developers will embrace sustainable development practices to satisfy their projects' environmental goals and meet the diversified needs of homebuyers. Additionally, advanced technology will be increasingly leveraged to enhance buyer experience. The sector will also offer exciting opportunities for all stakeholders—from homebuyers seeking dream homes to investors and developers shaping the future of India's real estate domain. Its evolution will be interesting to watch.