India's luxury homes dominate 2024 sales, crossing 50% mark

MUMBAI, JANUARY 16, 2025: Residential sales during 2024 witnessed sustained growth reaching a record-high volume of 302,867-unit sales, which was around 11% growth Y-o-Y. Driven by these all-time high sales in 2024, average annual sales during the post pandemic years (2022-2024) has surpassed the average annual sales during the last decade, (2010-2019*), by around 63%. This speaks about the rising preference for home ownership among buyers across price segments particularly post the pandemic, despite steady rise in property prices. Bengaluru, Mumbai, and Pune continue to lead annual sales across top 7 cities with around 62% share. Steadily increasing demand for housing in these cities backed by healthy launches have resulted in 8% growth in their total contribution to annual sales, when compared to 2023.

While continued expansion of the tech industry and favourable weather conditions in Bengaluru and Pune play a critical role in influencing housing demand in these cities, Mumbai’s housing sales have been largely driven by improved connectivity to suburban locations and sister cities and redevelopment in core city areas. Investors and end-users’ confidence in long-term prospects for the residential sector in these cities have had a positive impact on the housing sales. 2024 has also been a record year for the residential asset class with majority of the top 7 cities having witnessed their highest ever sales including Bengaluru, Mumbai, Hyderabad, Pune, and Kolkata.

A total of 72,930 units were sold during Q4 2024, a marginal dip of around 3% when compared to the same period last year. Bengaluru, Mumbai, and Pune accounted for around 64% share in quarterly sales. Demand for high value (INR 3 crore and above) homes witnessed sustained growth accounting for ~14% share in quarterly sales volume.

Source: Real Estate Intelligence Service (REIS), JLL Research
Note: Mumbai includes Mumbai city, Mumbai suburbs, Thane city, and Navi Mumbai; Delhi NCR includes Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad and Sohna.Data includes only apartments. Rowhouses, villas, and plotted developments are excluded from our analysis.

With increased number of launches by reputed developers, ensuring timely delivery and steady price appreciation, new launches over the last couple of years have been witnessing healthy sales traction. 2024 saw more than 30% Y-o-Y growth in contribution by new launches in annual sales, indicating strengthening buyer confidence and acted as a catalyst for higher sales momentum.

“Amid higher willingness to pay for quality homes and rising property prices, for the first time ever, apartments priced above INR 1 crore accounted for more than 50% share in annual sales. There has also been a significant growth of ~86% in the premium (INR 3-5 crore) segment sales and ~80% growth in luxury (INR 5 crore and above) segment sales when compared to 2023, driven by rise in high-net-worth individuals, increasing disposable income levels and evolving buyer preference for bigger, tech-enabled, and future-ready homes.” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL

Noticeable increase in the demand for high-value projects amid changing lifestyle preferences

Source: Real Estate Intelligence Service (REIS), JLL Research

New residential launches across top 7 cities reached a record-high during 2024, Bengaluru was the only city with historical high annual launches. Around 302,000 housing units got launched during 2024, the highest ever annual residential supply across top 7 cities. On a yearly basis, 2024 launches have risen marginally by around 3% Y-o-Y. Mumbai, Bengaluru and Hyderabad led annual launches with ~60% share.

The tech cities of Bengaluru, Chennai, Hyderabad, and Pune, largely driven by continued expansion in their commercial office sector together contributed around 60% share in 2024 launches.

“Residential supply during 2024 kept pace with sales, surpassing the 300,000-unit mark. A steady rise in the residential supply during the post pandemic years shows around 47% growth in average annual launches when compared to the average launches during 2010-2019*. Driven by rising demand for high-end housing, developers have been focusing on launch of premium and luxury segment projects, as evident from a 101% and 68% Y-o-Y surge in their launches respectively,” said Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), Head - Residential Services, India, JLL.* Sales during the covid years of 2020-2021 not being considered

Delhi NCR recorded highest Y-o-Y growth in annual launches; Bengaluru saw historical high launch.

Robust sales momentum causes a steady decline in months to liquidate the housing inventory, dropped by ~15% Y-o-Y.

Despite higher launches being almost at par with sales, unsold inventory by end 2024 across the seven cities witnessed a decrease by 0.1% on a Y-o-Y basis, amid robust demand momentum. Rising sales traction has also resulted in a Y-O-Y decline in the months to liquidate unsold inventory, which dropped from 26 months in Q4 2023 to 22 months by end 2024.

Around 85-90% of total annual sales during 2024 being recorded in under-construction projects speaks of strong buyer confidence even in projects in their early stages and has contributed to the decline in months to liquidate the unsold inventory.

Q4 2024 continued to witness residential price growth in the top seven cities (Delhi NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune, Kolkata) of India, with Y-o-Y price increase ranging from around 5% to 20%. Delhi NCR recorded the highest price increase of around 20% followed by Bengaluru with a significant hike of approximately 14%. Chennai, Hyderabad, and Kolkata too witnessed around 10% Y-o-Y growth in residential capital values. Amid soaring housing demand and quality launches, capital values have been on the rise and are expected to move northwards going forward.

Following upon a record high year in terms of sales and launches, 2025 is as well expected to exhibit a strong performance amid rising urbanization levels, infrastructure developments and rising demand for premium homes driven by changing lifestyle preferences of consumers and higher disposable income levels. Strengthening of buyer activities, quality supply inflow by reputed developers in prime locations, growth of peripheral micro-markets, increased institutional investments and rising demand for tech-enabled modern homes are expected to diversify the residential sector landscape and define the supply and demand momentum.

JLL is India’s premier and largest professional services firm specialising in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across 10 major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi, and Coimbatore) and over 130 tier-II and III markets with a cumulative strength of over 15,000 professionals. The Firm provides investors, developers, local corporates, and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centres, residential, retail, hospitality, healthcare, senior living, and education. For further information, please visit jll.co.in.