Luxury House Sales Rise 86% in India’s Housing Boom

Residential real estate in India has reached an all-time high and was booming in the year 2024. Sales of luxury houses went up unprecedentedly, from 25,833 units, priced between ₹3-5 crores, with a growth rate of 86%. In comparison, 13,881 units were sold in 2023. Ultra-luxury houses worth more than ₹5 crores showed an 80% increase.

The 2024 sales volume reached 302,867 units, marking an 11% Y-o-Y increase. This is the highest sales volume ever recorded since the last decade and 63% more sales than before the pandemic. Top cities include Bengaluru, Mumbai, and Pune which account for 62% of total annual sales, spurred on by sound infrastructure development and emerging technology centers.

Market Trends and Key Drivers

High-value properties of ₹3 crore and above sales accounted for 14% of sales in Q4 2024, selling 72,930 units in the quarter. This is 3% lower than the same period in 2023, but the luxury segment continues to be on a roll. “Increasing disposable incomes, a growing number of high-net-worth individuals, and a preference for spacious, tech-enabled homes have been driving this growth,” says Dr. Samantak Das, Chief Economist and Head of Research at JLL India.

The pandemic has shifted the buyer preference towards purchasing homes with ownership. For the first time in history, more than 50% of sales were derived from apartments priced above ₹1 crore. “Buyers are willing to pay for quality homes despite the rise in property prices,” said Das.

Record Launches and Declining Inventory

Residential supply matched the demand during 2024 as well, as over 302,000 new units were launched—another all-time high. Almost 60% of the launches came from the cities of Mumbai, Bengaluru, and Hyderabad. The premium and luxury segments witnessed heavy concentration, with launches from developers recording a 101% and 68% Y-o-Y rise in their respective counts.

Despite the unprecedented new supply entering the market, unsold inventory within the top seven cities declined modestly by 0.1% Y-o-Y. In addition, renewed buyer confidence in off-the-plan projects reduced the average time to clear inventory from 26 months within Q4 2023 to 22 months by the end of 2024.

Future Prospects: 2025

This trend will continue into 2025 on the back of increasing urbanization, infrastructural upgradation, and increased demand for modern premium homes. Along with the entry of quality projects, the consumer preference curve has been shifting; hence, in India, there is potential for the residential real estate sector to again log a record-breaking year.