April 15, 2024: Driven by supply from established developers, stable economic conditions and positive buyer sentiments, residential sales in the first quarter of 2024 (Q1 2024) experienced significant growth, according to a report by JLL India. The quarter achieved the highest residential sales to date, with a notable 20% increase compared to the same period in 2023, selling a total of 74,486 units. This quarter marks the second consecutive quarter where sales have exceeded 74,000 units, following the record-breaking performance in Q4 2023 (75,591 units). These results establish a strong foundation for continued growth in the residential market, surpassing the sales performance of 2023.
Residential sale trends in India
| Q1 Average
(2019-22) |
Q1 2023 | Q1 2024 | % share in 2024 | YoY change (%) | |
| Bangalore | 7,582 | 13,029 | 16,995 | 23% | 30% |
| Chennai | 2,875 | 2,563 | 3,373 | 5% | 32% |
| Delhi NCR | 6,812 | 10,139 | 10,153 | 13% | 0% |
| Hyderabad | 3,940 | 8,123 | 8,593 | 12% | 6% |
| Kolkata | 2,083 | 3,160 | 4,979 | 6% | 58% |
| Mumbai | 8,181 | 12,988 | 16,544 | 22% | 27% |
| Pune | 5,010 | 12,038 | 13,849 | 19% | 15% |
| India | 36,481 | 62,040 | 74,486 | 100% | 20% |
Dr Samantak Das, chief economist and head of research and REIS, India, JLL, said, “The quarterly sales were majorly contributed by the markets of Bangalore, Mumbai and Pune accounting for approximately 64% of the total sales. All these three cities saw robust launches that received good response from the buyers. While Bengaluru and Pune recorded highest sales in the Rs 50 lakh-75 lakh price segment, Mumbai saw maximum sales in the Rs 1.5 crore-3 crore price segment. The strategic launch of right products by the developers taking into cognizance the demand and market dynamics has led to this new growth phase in the residential market. Interestingly some of the branded developers are also planning to enter newer markets and cities to expand their portfolio and market share”.
Luxury segment sales in Q1 2024
| Ticket-size | Q1 2022 | Q1 2023 | Q1 2024 |
| Less than Rs 50 lakh | 27% | 18% | 15% |
| Rs 50 lakh – 75 lakh | 23% | 22% | 21% |
| Rs 75 Lakh – 1 Crore | 15% | 17% | 17% |
| Rs 1 crore – 1.5 crore | 16% | 20% | 19% |
| Rs 1.5 crore – 3 crore | 14% | 14% | 17% |
| Rs 3 crore – 5 crore | 3% | 4% | 7% |
| Above Rs 5 crore | 2% | 5% | 4% |
| Total | 100% | 100% | 100% |
Siva Krishnan, senior managing director – Chennai and Coimbatore, and head – residential services, India, JLL, said, “There have been notable shifts in the sales distribution across different segments of the residential market. In the luxury segment, which comprises apartments priced at Rs 3 crore and above, the share of quarterly sales has witnessed a significant increase, rising from 5% in Q1 2022 to 11% in Q1 2024. This growth is particularly pronounced in the Delhi NCR region, where in Q1 2024, around 44% of sales were in the luxury segment, fueled by a high number of launches and a strong buyer response. In contrast, the affordable segment, encompassing apartments priced below Rs 50 lakh, has experienced a decline in its share of sales, dropping from 27% to 15%. However, it is worth noting that in the overall sales volume of the top seven cities, the Rs 50 lakh-75 lakh segment still retains its prominence and holds the largest share. These figures reflect a shifting trend in the real estate market, with buyers showing increased interest in the luxury segment. It underscores the need for developers to cater to evolving buyer preferences and adapt their offerings accordingly.
Residential prices rise in Q1 2024
Residential prices in the top seven cities of India have been on an upward trajectory in Q1 2024, with increases ranging from 3-15% YoY. The highest price increase was witnessed in Bangalore and Delhi NCR to the tune of approximately 15%. Due to the faster pace at which quality launches are getting sold off, the availability of such inventory is extremely limited, resulting in a surge in prices. Additionally, developers are launching new phases of existing projects at elevated price points.
New residential launches in Q1 2024
The first quarter of 2024 witnessed a record-breaking number of residential launches with 79,110 units, surpassing the previous Q1 numbers. This represents a YoY growth of 5%. Developers have readjusted their marketing strategies, leading to a noticeable surge in the number of high-value projects being launched. Approximately 37% of these new launches were in the price bracket Rs 1.5 crore and above.
| City | Residential launches | ||||
| Q1 Average (2019-22) | Q1 2023 | Q1 2024 | % share in 2024 | YoY change (%) | |
| Bangalore | 10,508 | 11,745 | 12,616 | 16% | 7% |
| Chennai | 2,950 | 3,310 | 4,262 | 5% | 29% |
| Delhi NCR | 3,360 | 9,152 | 7,669 | 10% | -16% |
| Hyderabad | 6,839 | 13,844 | 16,728 | 21% | 21% |
| Kolkata | 1,870 | 3,737 | 3,093 | 4% | -17% |
| Mumbai | 11,745 | 16,867 | 20,224 | 26% | 20% |
| Pune | 5,894 | 16,340 | 14,518 | 18% | -11% |
| India | 43,166 | 74,995 | 79,110 | 100% | 5% |
Unsold inventory in Q1 2024
As of Q1 2024, unsold inventory across the seven cities increased by 1% on a QoQ basis as launches outpaced sales. Mumbai, Bangalore and Hyderabad together account for 66% of the unsold stock. An assessment of years to sell (YTS) shows that the expected time to liquidate the stock has remained the same at 2.1 years in Q1 2024.
Residential outlook for 2024
In 2024, the residential sale is expected to be around 3,00,000-3,15,000 units as the growth momentum currently seen is expected to be carried forward. Strategic land acquisitions at prime locations as well as along growth corridors in cities is expected to strengthen the supply inflow across cities. Established developers are expected to enter newer markets to fortify their portfolio and expand their market presence.
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Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
Email: [email protected]
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