Housing Sales in India Rise 7% in 2024, Reaching 12-Year High of 350,613 Units: Knight Frank

The Indian housing market continued to witness a significant uptick in the year 2024: 7% in sales across 8 major cities for a total of 350,613 units, a value not recorded in the last 12 years. This spike comes from higher demand for upper-tier homes, steady mortgage rates, and a favorable economic outlook, according to Knight Frank’s report.

According to Knight Frank India’s Chairman and Managing Director, Shishir Baijal, properties in the price range of Rs 2 crore to Rs 5 crore led the growth of the market, with sales in this category growing 85% on a year-over-year basis, while Hyderabad and Pune achieved record sales since their inception, and Mumbai marked the strongest performance in the past 13 years. Baijal noted that these higher-ticket segments have powered market momentum, even as sales in more affordable categories, such as homes under Rs 50 lakh and those priced between Rs 50 lakh to 1 crore, showed signs of fatigue.

The growth trend reflects a broader shift towards premium homes as buyers seek upgraded living spaces that cater to evolving lifestyle needs. Regardless of any fears regarding market overheating, Baijal pointed out that with 2020 being the starting point, premiumization has been a buzzword in real estate and 2024 would be the finale of this extended upward trend.

Among their Southern counterparts, cities like Bengaluru, Hyderabad, and Chennai have been further benefitted by this trend. The markets of Hyderabad, alongside Pune, have shown record peaks, further establishing the city as a key growth hub. Bengaluru also saw demand for upscale residential properties increase, driven by professionals looking for bigger and more luxurious homes.

Baijal also expressed optimism regarding the housing market, citing all the conditions necessary for a healthy market: stabilized interest rates and a strong economic backdrop. As India enters 2025, these factors are expected to continue fueling growth, especially in the premium housing sector, which has become increasingly dominant in major cities across the country.