Housing Sales Surge 68% in Jan-Mar to Rs 1.1 Trillion on Increased Volumes: PropTiger Report

The housing sector has experienced a remarkable surge, witnessing a 68% increase in value terms to nearly Rs 1.11 trillion during the January-March period across major cities. This substantial growth can be attributed to both higher volumes and price appreciation, as revealed by PropTiger.

According to PropTiger's quarterly report, titled 'Real Insight Residential January-March 2024,' housing sales in value terms escalated to Rs 1,10,880 crore in the mentioned period from Rs 66,155 crore in the corresponding period of the previous year.

Vikas Wadhawan, Group CFO of REA India and Business Head of PropTiger.com, underscored the positive impact of this surge on the economy. He stated, "Growth in housing sales both in volume and value terms bodes well for the overall economy as more than 200 ancillary industries, including cement and steel, are dependent on the real estate sector."

In terms of area, housing sales surged by 63% to 162 million square feet in the first quarter of this calendar year from 99 million square feet in the corresponding period of the previous year.

The report further highlights that housing sales grew by 41% to 1,20,640 units during January-March 2024 from 85,840 units in the corresponding period of the previous year.

Vikas Wadhawan expressed optimism about India's housing market, describing it as witnessing a "dream run." He attributed this growth to factors such as robust economic growth, steadfast mortgage rates, and an increasing desire for homeownership.

The report emphasized the positive trajectory of housing demand, fueled by investor confidence and robust demand from Non-Resident Indians (NRIs). Wadhawan noted that barring any unforeseen spikes in prices, the housing demand is poised for solid growth.

PropTiger calculated the sales value by multiplying the total number of units sold by the weighted average price and further by the weighted average size of the properties.

Major cities like Mumbai, Hyderabad, Delhi NCR, and Pune collectively accounted for 76% of the total transaction value of Rs 1.11 trillion. This surge not only signifies heightened demand but also reflects a remarkable 15-20% uptick in property prices within key business districts.

Ankita Sood, Head of Research, PropTiger.com and Housing.com, anticipated the momentum to continue in the coming two quarters, driven by economic growth and strong demand.

This surge in housing sales portrays a promising outlook for the real estate sector and the overall economy, indicating sustained growth and resilience.

Image source- timesproperty.com