October 3, 2024: In the latest report on India Real Estate: Office and Residential Market for July-September 2024 (Q3 2024), Knight Frank India revealed that residential sector witnessed another robust quarter across the leading eight residential markets. According to the report, in Q3 2024, home sales grew by 5% YoY to be recorded at 87,108 units, the highest quarterly sales in the year. This brings the total residential sales to 2,60,349 units in the first nine months of 2024, 9% higher than 9M CY2023. Mumbai led with sales of 24,222 units making this the best recorded quarterly sales volume since 2018.
Home sales in ticket size category of Rs 10 million and above continued to witness an uptrend. However, the share of sales in mid-size segment has moderated, while affordable segment continues to witness a downtrend. Homes priced in the Rs 10 million and above category constituted 46% of sales, growing by 41% YoY with 40,328 units sold in Q3 2024. Units priced between Rs 5-10 million category accounted for 30% share of total sales with 26,011 units sold, followed by units under Rs 5 million with 24% market share and sales of 20,769 units in Q3 2024.
New launches were recorded at 90,479 units, recording a 6% YoY growth in Q3 2024. Residential prices grew the most in Bengaluru at 10% YoY.
Shishir Baijal, chairman and managing director, Knight Frank India, said “The real estate market has experienced another exceptional period characterised by robust performance in the residential sector. The Rs 10 million and above segment continues to fire on all cylinders and remains the primary driver of overall sales growth. NCR was the only residential market to see a decline in this quarter and yet for the past 13 quarters, high-end properties in the NCR region (Rs 10+ mn) have consistently surged, accounting for 46% of all sales in Q3 2024, up from a year ago. Given the steady economic outlook and the likelihood of rate cuts, we believe that demand has enough tailwinds to sustain current momentum as the market approaches the end of the year.”
All India residential update: July – September (Q3 2024)
The stable interest rates since early 2023 and strong economic outlook has kept homebuyer sentiments buoyant and demand robust in 2024. Stepping into 2024, the Indian residential market has sustained its momentum with sales growing at 5% YoY in Q3 2024. Mumbai witnessed the highest sales volume and YoY growth, with 24,222 units sold in Q3 2024 and marking a 9% increase from the preceding year. The residential sales in Bengaluru (14,604 units) and Pune (13,200 units) have surpassed sales of NCR’s residential market in Q3 2024.
NCR is the only residential market to record a de-growth of (7%) in sales. NCR has historically been among the more speculative markets with a relatively higher quantum of investment interest. This coupled with very low inventory levels in mid and affordable categories in the right locations, have weighed down sales in the market.
The consistent increase in demand has spurred a rapid pace of residential development, resulting in the number of units launched surpassing sales figures for the last eight quarters. A total of 90,479 new residential units were launched in Q3 2024 registering a growth of 6% YoY. Pune experienced the most significant growth in units launched, with a YoY increase of 42%. Mumbai and Pune saw the highest volume of units launched in Q3 2024 and together constituted 43% of the units launched during the quarter.
Market summary: Top eight indian cities
| Sales | Launches | |||||
| City | Q3 2023 | Q3 2024 | % Change (YoY) | Q3 2023 | Q3 2024 | % Change (YoY) |
| Mumbai | 22,308 | 24,222 | 9% | 19,512 | 23,677 | 21% |
| Bengaluru | 13,169 | 14,604 | 11% | 13,353 | 13,966 | 5% |
| Pune | 13,079 | 13,200 | 1% | 10,568 | 15,049 | 42% |
| NCR | 13,981 | 12,976 | -7% | 16,108 | 13,128 | -19% |
| Hyderabad | 8,325 | 9,114 | 9% | 11,034 | 10,902 | -1% |
| Ahmedabad | 4,108 | 4,578 | 11% | 5,996 | 5,702 | -5% |
| Kolkata | 3,772 | 4,309 | 14% | 4,978 | 3,782 | -24% |
| Chennai | 3,870 | 4,105 | 6% | 4,000 | 4,273 | 7% |
| Total | 82,612 | 87,108 | 5% | 85,549 | 90,479 | 6% |
Source: Knight Frank Research
Sales acceleration in units priced over Rs 10 mn, sales in < Rs 5 mn segment see moderation
Below Rs 5 million
The share of sales in the affordable segment or the residential ticket size of Rs 5 mn (Rs 50 lakh) and below has declined by 14% YoY from 23,026 units in Q3 2023 to 20,769 units in Q3 2024. The combined impact of rising prices, higher home loan rates, and the relatively adverse effects of the pandemic in this sector persisted, suppressing demand. Mumbai and Kolkata are the only market where sales in these segments have grown in YoY terms. Interestingly, Mumbai constitutes half of the sales volumes accounted for by this segment.
While rising prices have kept homebuyers away from the market in this price sensitive segment, the lack of supply has also played a significant role in curtailing sales volumes. This is manifested in the fact that in contrast to the overall market where supply has exceeded sales in 9 of the past 10 quarters, it has lagged sales over the past 13 quarters in the affordable segment of units priced under Rs 5 mn.
Between Rs 5-10 mn
Sales in the mid segment – homes in the price range of Rs 5-10 mn have also witnessed dropped by 13% YoY in Q3 2024, as homebuyers’ focus shifted to the higher priced category during the quarter. The corresponding decline in new launches in this category has also played a part in sluggish sales here.
Rs 10 mn and above
Consistent with the upward trend seen in the past 13 quarters, the high -end segment – ticket size Rs 10+ mn, has grown significantly to 46% of all sales in in Q3 2024 as compared to 35% a year ago. The need for larger living spaces and an upgraded lifestyle which was sparked during the pandemic continues to fuel demand in this segment. Sales in this segment have grown by 41% YoY and it has been the primary driver for overall sales growth during the quarter.
| <5 mn | 5-10 mn | 10 mn> | |||
| City | Sales in units | City | Sales in units | City | Sales in units |
| Mumbai | 10,198 | Pune | 5,946 | NCR | 11,065 |
| Pune | 4,249 | Mumbai | 5,871 | Bengaluru | 9,316 |
| Kolkata | 1,715 | Bengaluru | 4,503 | Mumbai | 8153 |
| Ahmedabad | 1,585 | Hyderabad | 2,857 | Hyderabad | 5,775 |
| Chennai | 1,136 | Ahmedabad | 1,995 | Pune | 3,005 |
| Bengaluru | 785 | Kolkata | 1,798 | Chennai | 1220 |
| NCR | 619 | Chennai | 1,749 | Ahmedabad | 998 |
| Hyderabad | 482 | NCR | 1,292 | Kolkata | 796 |
| Total | 20,769 | Total | 26,011 | Total | 40,328 |
Source: Knight Frank Research
Ticket size split comparison of sales during Q3 2023 and Q3 2024
Source: Knight Frank Research
Residential price appreciation observed for all eight markets
The weighted average prices have appreciated in tandem with demand growth in YoY terms. Residential prices in Bengaluru saw the sharpest rise at 10% YoY as focus increasingly shifted toward the development of premium properties.
Average price change across markets during Q3 2024
| Market | YoY Change | QoQ Change |
| Bengaluru | 10% | 3% |
| Hyderabad | 6% | 3% |
| Mumbai | 6% | 2% |
| Chennai | 5% | 2% |
| Pune | 5% | 2% |
| NCR | 3% | -1% |
| Kolkata | 2% | 0% |
| Ahmedabad | 1% | 0% |
Source: Knight Frank Research
