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Homes for INR 1.11 lakh crore sold, 68% rise in home sales in Q1 2024

A recent report by PropTiger.com, a leading online real estate platform, reveals a significant rise in home-buying activity in the first quarter (Q1) of 2024. Let's explore what this means for potential buyers and the overall market.
The report highlights a surge in home sales across eight major Indian cities - Mumbai, Hyderabad, Delhi NCR, Pune, Bengaluru, Chennai, Kolkata, and Ahmedabad. Sales value, which considers both the number of units sold and average property prices, jumped an impressive 68% compared to Q1 2023. This translates to a total value of nearly INR 1.11 lakh crore (approximately USD 13.7 billion) for these eight cities. In terms of area, home sales also saw a significant increase of 63%, with a total of 162 million square feet sold compared to 99 million square feet in Q1 2023.
Several factors are contributing to this strong demand. A healthy economy, stable interest rates on home loans, and a growing desire for homeownership are all playing a role. Additionally, the report suggests a rise in investor confidence, potentially fuelled by interest from non-resident Indians (NRIs). These factors are expected to keep the momentum going, barring any unexpected price spikes.
Experts at PropTiger.com believe this trend is likely to continue in the coming quarters. They cite economic growth and sustained demand from potential buyers as key drivers. However, the report also acknowledges a potential concern - a rise in property prices within key business districts of major cities. This could impact affordability for some buyers. The report noted a 15-20% rise in property prices within these key areas.
Overall, the PropTiger.com report paints a positive picture for India's residential real estate market. Strong demand and a healthy economic environment suggest continued growth. However, potential buyers should be aware of potential price hikes in certain areas and plan accordingly.

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