A recent report reveals that 87,108 residential units were sold in the third quarter of 2024.
The Indian residential market maintained its strong performance in 2024, buoyed by stable interest rates since early 2023 and a positive economic outlook. These factors have kept homebuyer confidence high, leading to a 5% year-on-year increase in sales for Q3 2024. Mumbai led in both sales volume and growth, recording 24,222 units sold—up 9% from the previous year. Bengaluru and Pune followed with 14,604 and 13,200 units sold, respectively, surpassing the National Capital Region (NCR), where sales declined by 7%.
Historically speculative and investment-driven, the NCR market faced constraints due to low inventory in affordable and mid-range housing, further impacting sales.
Residential development has ramped up in response to high demand, with new unit launches exceeding sales for eight consecutive quarters. Q3 2024 saw 90,479 new units launched—a 6% increase year-on-year—with Pune witnessing the most substantial growth in new launches at 42%. Together, Mumbai and Pune accounted for 43% of the new units launched in Q3.
Market Performance Summary: Top Eight Indian Cities
| City | Q3 2023 Sales | Q3 2024 Sales | YoY Sales Change | Q3 2023 Launches | Q3 2024 Launches | YoY Launch Change |
|---|---|---|---|---|---|---|
| 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 |
Segment-Wise Sales Analysis
Affordable Segment (< Rs 5 million)
Sales in the affordable housing segment (units priced below Rs 5 million) dropped by 14% year-on-year to 20,769 units in Q3 2024. Rising property prices, high loan rates, and limited supply have constrained demand. Mumbai and Kolkata were the only cities where affordable segment sales grew.
Mid-Range Segment (Rs 5-10 million)
The mid-range segment, encompassing homes priced between Rs 5-10 million, saw a 13% decline in sales as homebuyers gravitated toward higher-priced properties. A reduction in new launches within this segment also affected sales.
High-End Segment (> Rs 10 million)
The high-end segment, comprising homes priced above Rs 10 million, grew substantially, reaching 46% of all sales in Q3 2024, up from 35% a year ago. Driven by demand for spacious and upgraded living spaces, this segment recorded a 41% year-on-year increase in sales, becoming the key contributor to overall sales growth.
| Price Segment | Key City | Sales Volume |
|---|---|---|
| < Rs 5 million | Mumbai | 10,198 |
| Pune | 4,249 | |
| Kolkata | 1,715 | |
| Rs 5-10 million | Pune | 5,946 |
| Mumbai | 5,871 | |
| Bengaluru | 4,503 | |
| > Rs 10 million | NCR | 11,065 |
| Bengaluru | 9,316 | |
| Mumbai | 8,153 | |
| Total | 40,328 | |
| Source: Knight Frank Research |
Overall, the Indian residential market in Q3 2024 showcases strong growth in high-end housing, a steady expansion in new launches, and city-specific trends in sales distribution across price segments.
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