Residential sales soar in first quarter of 2024, setting a milestone at 74,486 units, outperforming all previous Q1 performances.
Insight
Residential Market Update: Q1 2024
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Driven by supply from established developers, stable economic conditions, and positive buyer sentiments, residential sales in the first quarter of 2024 experienced significant growth. It achieved the highest residential sales as compared to all previous Q1 performances, selling a total of 74,486 units.
This quarter marks the second consecutive one 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.
Like the sales trend, the first quarter of 2024 witnessed a record-breaking number of residential launches with 79,110 units, surpassing all previous Q1 numbers. This represents a y-o-y growth of 5%. Some of the new launches got remarkably good response from the buyers and there were active enquiries for projects in the pre-launch phase.
Announcements made by various branded developers show a strong launch pipeline in rest of the quarters in 2024. Moreover, as new land acquisitions in strategic locations and growth corridors continue, the launches of new residential projects are anticipated to gain further strength. Some of the branded developers are also planning to enter new markets and cities to expand their portfolio and market share.
Key Trends:
Luxury segment experienced significant sales growth: 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 INR 3 crore and above, the share of quarterly sales has witnessed a significant increase, rising from 5% in Q1 2022 to 11% inQ1 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.
Bengaluru, MMR, and Pune drove Q1 2024 residential sales with a cumulative total of 47,388 units: The quarterly sales were majorly contributed by the markets of Bengaluru, Mumbai, and Pune accounting for~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 INR 50 lakh-75 lakh price segment, Mumbai saw maximum sales in the INR 1.5 crore-3 crore price segment.
Mumbai, Hyderabad, and Pune accounted for 65% of the new launches: Mumbai, Hyderabad, and Pune saw the highest number of residential projects being launched during the quarter. Mumbai witnessed the launch of more than 20,000 units in the quarter. About 15% of the new launches in Mumbai and Hyderabad were priced at INR 3 crore and above. Around 33% of the launches in Pune were between INR 75 Lakh-1 Crore.