India’s first-quarter housing sales see value growth driven by higher prices and premium home demand, even as overall volumes remain subdued across key urban centres.
India’s housing market delivered a mixed performance in the first quarter, with higher prices helping lift sales value even as volumes stayed subdued. KIE Research said residential sales value rose 9 per cent year on year, driven by a 6 per cent increase in pricing and a 3 per cent rise in volume. The firm said the industry has now seen three straight years of range-bound volumes, although larger developers are still gaining ground through expansion into new geographies and a bigger share of the market.
All-India residential sales in the quarter came in at 247 million square feet, while launches were slightly lower at 242 million square feet. Average realisation increased to Rs 9,629 a square foot, offsetting weaker activity and supporting the rise in sales value. KIE Research said its coverage universe had reached 18 per cent of its FY27 pre-sales guidance. Murtuza Arsiwalla, an analyst at KIE Research, told Bizz Buzz that stock prices had held up over the past three months despite uneven sales because valuations remained inexpensive and balance sheets were healthy.
The regional picture was uneven. Demand weakened in the National Capital Region, where sales fell to 23.5 million square feet as launches dropped to 21.2 million square feet. By contrast, Mumbai Metropolitan Region sales rose to 41.5 million square feet, helped by 33.8 million square feet of launches. Bengaluru reached 30.7 million square feet, while Hyderabad climbed to 34.3 million square feet on the back of 55.5 million square feet of launches. Fenil Dinesh Brahmbhat of Choice told Bizz Buzz that housing sales across India’s top seven cities fell 6 per cent, citing higher prices and geopolitical uncertainty linked to the Middle East.
The quarter also highlighted the market’s tilt towards premium homes. JLL said India’s residential market sold 74,486 units in Q1 2024, up 20 per cent from a year earlier, while launches hit a record 79,110 units. JLL added that homes priced at Rs 3 crore and above increased their share of quarterly sales from 5 per cent in Q1 2022 to 11 per cent in Q1 2024, with Delhi NCR leading that shift. Separate industry data showed Bengaluru topped sales among major cities, underscoring the strength of demand in key urban centres even as the broader market remained selective.
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