India’s real estate sector is witnessing an unprecedented surge in housing sales, with properties worth ₹5.1 lakh crore projected to be sold across major urban centers in 2024. This marks a record-breaking milestone, surpassing previous years and signaling a robust demand for premium housing, particularly in metropolitan cities.
Record Sales in India’s Top 7 Cities
According to recent data, the combined housing sales across India’s top seven cities—Delhi NCR, Mumbai, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata—have reached historic highs. In the first nine months of 2024 alone, approximately 2.3 lakh residential units were sold, totaling ₹3.8 lakh crore. Analysts forecast that by the end of the year, total sales will exceed ₹5.1 lakh crore, setting a new industry record.
Delhi NCR has emerged as a frontrunner, with around 39,000 homes sold, spanning over 89 million square feet of space and contributing ₹1.2 lakh crore to the total. Mumbai followed closely, recording sales of ₹94,000 crore from properties covering approximately 61 million square feet.
Premium Housing Fuels Growth
The surge is largely attributed to the growing demand for premium housing. In cities like Gurugram, part of Delhi NCR, property prices have skyrocketed, with even entry-level homes now costing ₹2 to ₹3 crore or more. Despite Delhi NCR registering the highest total sales value, Mumbai remains the most expensive market on a per-square-foot basis.
Interestingly, Bengaluru is witnessing larger average property sizes compared to Mumbai and Delhi NCR, although prices remain relatively more affordable in the southern tech hub.
Factors Driving the Real Estate Boom
Several factors have contributed to the ongoing real estate boom:
1. Economic Growth and Urbanization
Rapid urbanization, coupled with India’s steady economic growth, is fueling increased housing demand in metropolitan regions. Infrastructure improvements and the expansion of urban centers have created a favorable environment for residential investment.
2. Rising Disposable Incomes
Post-pandemic, there has been a noticeable rise in disposable incomes, particularly among those in higher-paying sectors. As a result, more individuals are opting for premium and luxury housing.
3. Stable Interest Rates
While interest rates have remained elevated compared to the pre-COVID period, they have not increased further in recent months. This stability has encouraged homebuyers to proceed with purchases, especially in the mid-to-high-end segments.
4. Government Initiatives
Programs such as “Housing for All” and other infrastructure-driven policies have helped strengthen consumer confidence. Additionally, foreign investment has flowed into the Indian real estate market, contributing to the bullish sentiment.
5. Post-COVID Lifestyle Shifts
The shift to remote and hybrid working models has motivated many individuals to invest in larger, more comfortable homes. This change in lifestyle priorities has also spurred demand for homes with better amenities, especially in the premium housing category.
Affordable Housing Faces Challenges
Despite the robust performance in the premium segment, affordable housing—defined as homes priced below ₹50 lakh—is facing headwinds. Rising inflation, stagnant wage growth, and higher lending rates compared to pre-pandemic levels have made it harder for lower and middle-income households to purchase homes.
Real estate experts suggest that government interventions such as lowering land costs, reducing taxes, and offering incentives to developers could help revive the affordable housing sector.
Outlook for 2025
The momentum in India’s real estate market is expected to continue into 2025. Leading developers have already acquired significant land parcels across major cities, indicating plans for further residential development. The strong demand for premium housing and ongoing infrastructure enhancements suggest that housing prices are likely to continue rising.
Analysts also highlight that increased housing sales contribute positively to India’s GDP, as higher real estate activity leads to greater value addition in the economy.
India’s housing market in 2024 has set new records, driven primarily by urban growth, rising incomes, and a shift toward premium properties. While the high-end segment thrives, affordable housing remains an area requiring focused policy support.
As 2025 approaches, the market outlook remains bullish, with expectations of continued sales growth and further appreciation in property values.
