Residential sales set a milestone at 74,486 units in Q1 2024

• Bengaluru, MMR, and Pune drive Q1 2024 residential sales recording highest Q1 sales performances at a cumulative total of 47,388 units.
  
  
• Share of the luxury segment (apartments priced INR 3 crore and above) in quarterly sales has increased from 5% in Q1 2022 to 11% in Q1 2024.
  
  
• Q1 2024 saw a record-breaking number of new residential launches with 79,110 units, surpassing the previous Q1 numbers by 5%.

Mumbai, April 15, 2024: Driven by supply from established developers, stable economic conditions, and positive buyer sentiments, residential sales in the first quarter (Jan-March) of 2024 experienced significant growth. The first quarter of 2024 (Q1 2024) achieved the highest residential sales to date, with a notable 20% increase compared to the same period in 2023, selling a total of 74,486 units. This quarter marks the second consecutive quarter 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.

India’s residential market – Scaling new heights.

^{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.}

“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. The strategic launch of right products by the developers taking into cognizance the demand and market dynamics has led to this new growth phase in the residential market. Interestingly some of the branded developers are also planning to enter newer markets and cities to expand their portfolio and market share” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, JLL India.

Luxury segment soars, pushing up quarterly sales.

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

“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% in Q1 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. In contrast, the affordable segment, encompassing apartments priced below INR 50 lakh, has experienced a decline in its share of sales, dropping from 27% to 15%. However, it is worth noting that in the overall sales volume of the top seven cities, the INR 50 lakh-75 lakh segment still retains its prominence and holds the largest share,” said Siva Krishnan, Senior Managing Director - Chennai & Coimbatore, and Head - Residential Services, JLL India. “These figures reflect a shifting trend in the real estate market, with buyers showing increased interest in the luxury segment. It underscores the need for developers to cater to evolving buyer preferences and adapt their offerings accordingly,” he added.

Residential prices in the top seven cities of India have been on an upward trajectory in Q1 2024, with increases ranging from 3-15% Year-on-Year (Y-O-Y). The highest price increase was witnessed in Bengaluru and Delhi NCR to the tune of ~15%. Due to the faster pace at which quality launches are getting sold off, the availability of such inventory is extremely limited, resulting in a surge in prices. Additionally, developers are launching new phases of existing projects at elevated price points.

The first quarter of 2024 witnesses a record-breaking number of residential launches with 79,110 units, surpassing the previous Q1 numbers. This represents a Y-O-Y growth of 5%. Developers have readjusted their marketing strategies, leading to a noticeable surge in the number of high-value projects being launched. Approximately 37% of these new launches were in the price bracket INR 1.5 crore and above.

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

As of Q1 2024, unsold inventory across the seven cities increased by 1% on a Q-o-Q basis as launches outpaced sales. Mumbai, Bengaluru, and Hyderabad together account for 66% of the unsold stock. An assessment of years to sell (YTS) shows that the expected time to liquidate the stock has remained same at 2.1 years in Q1 2024.

In 2024, we expect the residential sales to be around 300,000-315,000 units as the growth momentum currently seen is expected to be carried forward. Strategic land acquisitions at prime locations as well as along growth corridors in cities is expected to strengthen the supply inflow across cities. Established developers are expected to enter newer markets to fortify their portfolio and expand their market presence.

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 14,000 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