JLL Report: Housing Sales in 2024 Set to Cross 3.05 Lakh Units in Major Cities Like Delhi NCR, Mumbai and Bengaluru

The real estate market in India has experienced consistent growth in 2024, with increasing demand for residential properties across several key cities. Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Pune, and Hyderabad are at the forefront of this upward trend. A recent report by JLL estimates that these cities are set to surpass 3.05 lakh housing units sold by the end of the year, a clear indication of the growing interest in residential real estate.

From January to September 2024, 2.30 lakh homes were sold, generating Rs. 3.8 lakh crore in sales value. This covers around 363.2 million square feet of residential space. With the final quarter of the year approaching, sales are expected to continue to rise, maintaining the positive trajectory. The report further estimates that the total value of residential sales will reach Rs. 5.10 lakh crore, with 485 million square feet of space sold. This growth is attributed to a combination of factors, including ongoing demand and a variety of housing options available in major cities.

Rising Demand for Residential Properties

The final quarter of 2024 is expected to contribute to continued growth, especially with the festive season often driving an uptick in real estate transactions. The third-quarter sales saw an average of 75,000 units sold per month, and this pace is expected to either maintain or increase in the coming months. As demand continues to rise, property prices are likely to follow suit, pushing the overall value of homes sold in these cities higher.

Among these cities, Delhi continues to lead the housing market, supported by strong demand for both premium and more affordable properties. Mumbai, as the second-largest market, continues to attract buyers, particularly those looking for prime properties. Bengaluru ranks third, with a growing demand for larger living spaces, a contrast to Mumbai’s typically smaller apartments.

Developer Activity and Land Acquisition

Developers are responding to this increasing demand by securing land in these major cities for upcoming residential projects. Looking ahead to 2025, developers are acquiring strategic plots in anticipation of the continued demand for housing. Siva Krishnan, Senior Managing Director at JLL, pointed out that as land becomes more scarce, capital values are likely to increase, which will further drive the market. The focus on land acquisition signals that developers are preparing for sustained growth, planning for a future where homebuyers’ needs continue to expand.

The trend of acquiring land is crucial in ensuring the availability of housing for the growing population in urban centers. As metro cities become more densely populated, developers are looking to create larger residential projects, including mixed-use developments, to cater to both housing and commercial needs.

Employment and Infrastructure Development

The growth of the real estate market is not only contributing to the housing sector but also providing significant employment opportunities. The surge in residential construction has led to more job creation in both the construction and related industries. This employment boom is supporting broader economic growth, particularly in urban regions.

Additionally, the improvement of urban infrastructure plays a critical role in the continued growth of the housing market. As cities develop better transportation systems, public amenities, and utilities, they become more attractive to both investors and homebuyers. This enhanced infrastructure further stimulates the demand for residential properties, as people seek to live in areas with better connectivity and modern facilities.

Growth in Premium Housing

Another prominent trend in 2024 has been the growth in demand for premium housing, particularly in Delhi-NCR. The demand for luxury homes is strong, with the average sale price of apartments reaching Rs. 1.64 crore in some areas. This increase in the price of high-end properties is primarily driven by the rising interest from high-net-worth individuals (HNWI) and investors seeking premium homes. Developers are focusing more on this segment of the market, recognizing the increasing number of buyers willing to invest in upscale properties.

As the demand for luxury homes rises, so do property values, particularly in areas such as Delhi NCR, where demand is highest. This trend is expected to continue, with the premium housing market becoming a key area for developers and investors looking for high returns.

Outlook for 2025

Looking ahead to 2025, the housing market in India is expected to continue its positive growth trend. Demand for residential properties is set to remain strong across all price segments, including both affordable and luxury housing. As developers secure more land and expand their portfolios, the market will see further growth. Capital values are expected to rise as developers complete new projects and continue to cater to both urban and suburban buyers.

The real estate sector’s growth in 2024 is a reflection of the strong demand for housing, increasing property values, and the ongoing development of urban infrastructure. With steady sales figures and a positive outlook for the coming year, the real estate market in India is set to remain a key driver of economic activity.