The housing sector in the country continued its positive momentum into 2024, with a strong 41 percent increase in first-quarter sales compared to the previous year. Additionally, around 103,020 new residential units were launched in the top eight cities during Q1 2024. Although there was a significant surge in supply in the first two years following the pandemic, the rate of new property launches has slightly slowed, with a 30 percent decrease compared to the same period last year. It is important to note, however, that this trend applies specifically to the mentioned quarter.
A Quick Look at the Key Trends Observed During the First Quarter
During the first quarter of 2024, Mumbai, Pune, and Hyderabad led the way in terms of new property launches, together accounting for a significant 75 percent share of the total new supply in the top eight cities.
An in-depth look at the ticket-size distribution of new residential supply in the top eight cities during Q1 2024 reveals an interesting pattern, that of the considerable decrease in share of properties priced under the INR 45 lakh threshold. This category has decreased sharply to only 21 percent in the present quarter.
In contrast, the segment including properties priced at INR 1 crore and above has experienced a noteworthy surge, claiming a substantial 36 percent share in Q1 2024.
2 BHK Homes Rule the Roost
Developers across various cities have strategically pivoted towards certain configurations, notably emphasizing 2 BHK homes, which constituted a substantial 39 percent share of the total new supply. Following closely behind is the 3 BHK configuration, capturing a notable 28 percent share.
This concerted focus on 2 BHK and 3 BHK housing units underscores developers' efforts to align with prevailing demand patterns and cater to the evolving needs of homebuyers. Interestingly, beyond the quantitative analysis of supply, there emerges a qualitative dimension derived from consumer behaviour.
High-intent homebuyer searches on our platforms have exhibited a discernible trend towards larger configurations, particularly 3 BHK and 3+BHK units. The rise in interest for these spacious layouts is remarkable, witnessing a sixfold increase in Q1 2024 compared to the corresponding period in the preceding year.
This surge not only reflects a growing preference for upgraded living spaces but also signals a notable shift in lifestyle aspirations among homebuyers.
The inclination towards larger configurations signifies more than just a desire for additional square footage; it reflects a broader narrative of evolving lifestyles and changing housing priorities. As urban dwellers increasingly seek homes that accommodate remote work setups, leisure spaces, and multi-generational living arrangements, the appeal of spacious layouts becomes more pronounced. Moreover, the observed surge in demand for 3 BHK and 3+BHK configurations may also be attributed to demographic shifts and changing household dynamics. With families prioritizing comfort, privacy, and flexibility in living arrangements, larger homes offer the versatility to adapt to diverse needs and preferences.
From a developer's perspective, these insights present both opportunities and challenges. While there is a clear market appetite for larger configurations, catering to such demand entails navigating complex factors such as land availability, construction costs, and regulatory constraints.
Balancing affordability with aspirational living standards remains a perennial challenge, requiring developers to innovate and tailor their offerings to suit evolving consumer expectations. These encompass providing medical services, safety protocols, and security measures, along with ample open areas and recreational amenities.
Summing Up
The first quarter of 2024 saw a consistent influx of new offerings in the luxury housing sector, with the trends reflecting a dynamic interplay between supply-side strategies and shifting consumer preferences. As developers adapt to meet the growing demand for larger configurations, the housing market continues to evolve, presenting new opportunities and shaping the future trajectory of urban living. Looking ahead, we anticipate developers maintaining their emphasis on spacious layouts and amenities that resonate with changing consumer tastes in the forthcoming quarters.
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