June 14, 2024: India’s residential real estate sector crossed the 1 billion square foot (sqft) sales mark in FY24, clocking 20% YoY growth in sales at 1.1 billion sqft, according to a report by Kotak Institutional Equities. Strong sales volume, coupled with healthy price improvement (11% YoY) and aggressive inventory liquidation (82 million square foot in FY24), has meant that inventory levels are down to just 15 months. Among listed players, Godrej, Prestige, Signature and Brigade delivered very strong growth in FY24. Extant inventory is at multi-year lows and new launches are continuing to garner strong demand. The sales momentum is expected to continue unabated in FY25.
All-India residential sales rose to a lifetime high of 1.1 billion sqft (up by 20% YoY) in FY24, with average realisation rising to Rs 7,575/sqft (up by 11% YoY). Q4 FY24 also saw the highest ever quarterly sales of 295 msf (up by 17% YoY and 1% QoQ), with average realisation rising to Rs 7,944/sqft (up by 8% YoY, 4% QoQ). Demand in Q4 FY24 was led by MMR that saw sales of 54.9 msf (up by 33% YoY and 16% QoQ), followed by Bangalore at 28.6 msf (up by 21% YoY and 7% QoQ) and Hyderabad 47.7 msf (up by 23% YoY and down by 10% QoQ). The NCR market saw lower sales in Q4 FY24 at 19.8 msf (down by 22% YoY and 13% QoQ), led by a decline in Gurgaon. Launches in Q4 FY24 were a tad lower, but still healthy at 233 msf (down by 9% YoY and 14% QoQ). Momentum has sustained in April 2024, with sales of 99 msf (up by 29% YoY and down by 2% QoQ), aided by launches of 64 msf.
Overall, inventory across the country reduced to 1.37 billion sqft (down by 6% YoY and 4% QoQ), as of March 2024, equivalent to 1.3 years of sales (trailing 12 months). Average realisation growth of 8% YoY in Q4 FY24 was led by Bangalore at Rs 8,507/sqft (up by 24% YoY and 5% QoQ). Other markets saw more modest increases- NCR at Rs 12,653/sqft (up by 13% YoY and down by 1% QoQ) led by Noida, MMR at Rs 12,684/sqft (up by 4% YoY and 6% QoQ) and Hyderabad at Rs 7,922/sqft (up by 4% YoY and 2% QoQ).
In Q4 FY24, the global real estate sector witnessed pre-sales of Rs 303 billion (up by 22% YoY and 3% QOQ), implying an all-India market share of 12.9%. In FY24, pre-sales rose to Rs 987 billion (up by 41% YoY). Godrej, Prestige, Signature and Brigade had the highest pre-sales growth, followed by Sobha and Lodha.
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