Real Estate in 2024: Housing Sales Value Up 16% Despite Volume Dip

2024 has been tremendously revolutionary for India, particularly in real estate, indicating how well the sector has stood up to the sales volume slackness. Real estate consultancy firm Anarock notes that in overall housing sales, the rise in value by 16% came to a whopping figure of ₹5.68 lakh crores in 2023 against ₹4.88 lakh crores in 2022, primarily driven by the 21% rise in the average price of houses across these seven Indian cities: D Delhi-NCR, M Mumbai Metropolitan Region (MMR), B Bengaluru, P Pune, H Hyderabad, C Chennai, and K Kolkata.

Price moves because of the covering costs like land, labor, and construction materials. To add salt to the injury: housing sales had to bear the brunt of this additional burden with a slight dip of 4% as sales stood at 4.59 lakh units for 2024 compared with 4.76 lakh units in 2023. Fresh housing supply had also dropped by 7%, going to 4.12 lakh units in 2024, down from 4.45 lakh units in 2023.

Anarock Chairman Anuj Puri describes this year as a mixed bag for Indian housing about 2024. He highlighted that factors like general and assembly elections and delays in project approvals contributed to the reduced sales volume. Despite these hurdles, the sector saw significant value growth due to rising housing prices.

The luxury housing segment emerged as a key growth driver in 2024, reflecting evolving buyer preferences. Vishal Raheja, Founder and Managing Director of InvestoXpert.com, called 2024 a transformative year for real estate. He attributed the growth in luxury housing to increasing demand from buyers seeking value-driven investments.

“India’s real estate story remains resilient,” said Raheja. Increased buying aspirations and steady urbanization continue to shape the market, thus reflecting the growing confidence in the Indian economy.”

By the end of 2024, there will be a major challenge around the real estate sector, on the one hand, and the opportunity on the other to capitalize on those challenges. Market adaptability and resilience prove the potential for long-term growth in the future.