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The number of residential units launched in the first half of 2024 reached a record high of 1,59,455, according to global real estate services firm, JLL. This translates to approximately 55% of the total units launched throughout the entire year of 2023. The supply of new residential projects has shown consistent growth this year.
During the first half of 2024, majority of the new residential projects launched were in the upper-mid segments (Rs 1 to Rs 3 Crore). However, there has been a significant growth in the share of premium and luxury segments compared to the same period in 2023. Developers have adapted their product launches and marketing strategies to meet changing buyer preferences, especially after the pandemic.
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As a result, there has been a noticeable increase in the supply of high-value projects in the past few quarters. In H1 2024, premium projects accounted for approximately 12% of new launches, while luxury projects accounted for around 6%.
During Q2 2024 (April-June 2024), Bengaluru, Mumbai and Delhi NCR emerged as the top cities in terms of new project launches, accounting for around 60% share. Interestingly, among the three metro cities, Delhi NCR stood out with a significant 64% share in Q2 high-end launches (homes priced INR 3 crore and above) as several prominent developers focused on launching luxury projects in Delhi NCR, particularly in Gurugram.
“The current year has witnessed an impressive increase in both launches and sales momentum, with approximately 54-57% of last year's total volume already achieved in just half a year. The consistent growth can be attributed to the successful launch of strategically tailored products by developers who have carefully assessed market demand and dynamics. Interesting to note, sales momentum has successfully complemented the new launches with around 30% of the H1 2024 sales (154,921 units) being contributed by projects that got launched during the last six months. Listed and reputed developers, consistently bringing in a substantial supply over the past few years have played a key role in this growing trend,” Chief Economist and Head of Research and REIS, India, JLL, Dr. Samantak Das.
“There has been a notable surge in launches within the premium segment (priced between Rs 3-5 Crore) and luxury segment (priced above Rs 5 Crore) compared to other segments. In H1 2024, launches in the premium segment surged by 169% Y-o-Y, followed by a 116% Y-o-Y increase in luxury segment launches. On the contrary, the mid segment projects (priced between INR 50 lakh -1 crore) experienced a 14% 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,” said Senior Managing Director (Chennai & Coimbatore), Head - Residential Services, India, JLL, Siva Krishnan.
Q2 2024 continued to witness residential price growth in the top seven cities (Delhi NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune, Kolkata) with Y-O-Y price increase ranging from 5% to 20%.
Residential sales momentum continued to be on a high growth curve in the first half of 2024 driven by strong supply from reputed developers, favourable economic conditions, and positive buyer sentiments. The period recorded the highest ever half yearly sales, with a remarkable 22% increase compared to the same period in 2023, totalling 154,921 units. This upward trajectory in demand paves the way for sustained growth in the residential market. Most of the cities witnessed robust Y-o-Y growth in sales volume with the markets of Bengaluru, Mumbai, Pune, and NCR accounting for around 80% share in half-yearly sales.
In line with the trend observed in launches, in the first half of 2024, the sales of premium category projects (priced between INR 3-5 crore) saw a remarkable y-o-y growth of around 160%. Similarly, the luxury segment (priced above INR 5 crore) also experienced a significant sales increase of 60% compared to the same period in the previous year.
The outlook for residential sales in 2024 remains positive, with an expected range of 315,000 to 320,000 units. This projection is based on the sustained growth momentum in the market. Additionally, supply is expected to match the demand as established developers are acquiring land in prime locations and growth corridors to launch their projects in the near to medium term. Some developers are also considering expanding their portfolio and entering new markets to increase their presence nationwide.
