Industry
Mint Primer | Why 2024 was a mixed bag for the housing sector
Summary
Home sales in 2024 have failed to match last year’s peak, leading to a 4% fall. A steady rise in sales hit a roadblock this year—the first time since the pandemic. Project launches, or new supply of homes, also dropped but property prices continued to rise. Mint explains:
How did home sales perform?
Residential sales in the top seven cities saw a slight fall this year compared with 2023, against hopes they would touch a new peak in 2024. The sector’s growth momentum was dented not just by lower sales but also the new supply pipeline, as per Anarock Property Consultants. The elections and a slow project approval process resulted in a decline in the number of new project launches. While sales saw a dip, they were offset by a 16% jump in the overall sales value, due to average price appreciation and increasing unit or home sizes. Unsold stock also declined in many cities, with Pune witnessing the sharpest dip.
How did home sales perform?
Residential sales in the top seven cities saw a slight fall this year compared with 2023, against hopes they would touch a new peak in 2024. The sector’s growth momentum was dented not just by lower sales but also the new supply pipeline, as per Anarock Property Consultants. The elections and a slow project approval process resulted in a decline in the number of new project launches. While sales saw a dip, they were offset by a 16% jump in the overall sales value, due to average price appreciation and increasing unit or home sizes. Unsold stock also declined in many cities, with Pune witnessing the sharpest dip.
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Which were the best performing cities?
Mumbai Metropolitan Region (MMR), the country’s most valued property market, saw the highest sales with around 155,335 units sold in 2024. The year-on-year rise however was only 1%. Pune sold around 81,090 units, but saw a yearly decline of 6% over 2023. Bengaluru sold 65,230 units this year, but launched more—around 70,965 units.
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Which were the best performing cities?
Mumbai Metropolitan Region (MMR), the country’s most valued property market, saw the highest sales with around 155,335 units sold in 2024. The year-on-year rise however was only 1%. Pune sold around 81,090 units, but saw a yearly decline of 6% over 2023. Bengaluru sold 65,230 units this year, but launched more—around 70,965 units.
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Who will steer the market next year?
The top four listed developers, DLF, Prestige Group, Macrotech Developers, and Godrej Properties, are collectively targeting ₹88,000 crore of sales in FY25, which will be a big milestone for the entire sector. All eyes are on these four, who have increased their market share and grown sales in recent years. However, it has been a slow start for some companies, such as DLF and Prestige Group. To achieve their sales targets, they will need to launch and sell aggressively in the coming months.
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