Premium Real Estate Booms: Residential Sales Reach Decade's Highest Point 2024
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Premium Real Estate Booms: Residential Sales Reach Decade's Highest Point 2024
In the first half of 2024, residential property sales reached their highest point in a decade, driven not by affordable housing but by the luxury segment. This trend highlights a growing preference for upscale properties among buyers. The demand for high-end homes is attributed to increasing disposable incomes, changing lifestyles, and the desire for better amenities. This shift underscores the evolving dynamics of the real estate market, where premium properties have emerged as the top choice for buyers seeking exclusivity and luxury.
The report highlights the significant demand for residential properties, reflecting a strong buyer sentiment and a rejuvenated real estate market. The sustained interest and investments in residential properties underscore the sector's resilience and its pivotal role in the country's economic landscape.
Key metropolitan areas have been at the forefront of this growth, with increased sales volumes signaling a positive trend for the foreseeable future. This surge in residential property sales is a testament to the sector's recovery and the growing confidence among homebuyers and investors alike.
As the real estate market continues to thrive, stakeholders are optimistic about maintaining this momentum in the coming months, further solidifying the sector's contribution to India's economic growth.
Gulam Zia, Senior Executive Director at Knight Frank India, noted a significant shift towards premium housing segments in H1 2024, with sales surpassing 1,73,000 units—a decade-high record. The premium category now commands 34% of the market, up from 15% in H1 2018. Conversely, sales for affordable housing (below Rs 50 lakh) dropped to 27% in H1 2024 from 32% in H1 2023, reflecting challenges from rising prices and home loan rates exacerbated by pandemic impacts.
Luxury Real Estate Leads Growth in H1 2024
The luxury residential market in India saw a significant uptick during the first half of 2024, capturing a substantial 41% share of total sales across major markets. Sales in properties priced over Rs 1 crore surged by 51% year-on-year, reaching 71,349 units compared to 47,130 units in the previous year.
In the premium segment, the National Capital Region (NCR) emerged as the top performer with 20,795 units sold, followed by Mumbai (14,699 units) and Bengaluru (13,698 units).
Despite the rise in sales, affordability concerns persist in the mid-segment category. Inventory levels saw a 3% increase year-on-year, with a notable 27% rise in the premium segment. However, indicators, like Quarters to Sell (QTS), improved, dropping to 5.9 quarters overall and 5.1 quarters for the premium segment.
Looking ahead, experts anticipate continued market momentum supported by stable economic conditions and a growing preference for premium housing. Efforts are underway to address challenges in lower price categories for a more inclusive market budget growth.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, expressed optimism, citing expectations of sustained stability in socio-economic and political conditions.
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