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The Indian housing market is experiencing a rise, with recording sales of 74,486 apartments for the first quarter of 2024. This marks the second consecutive quarter surpassing 74,000 units sold, despite difficulties like rising mortgage rates currently hovering around 9% and property prices witnessing a steady uptrend. These price increases range from 3-15% from a year ago, with Bengaluru and Delhi NCR experiencing the highest hikes of around 15%.
Experts attribute this growth to several factors. A stable Indian economy and positive buyer sentiment are creating a strong foundation for the market. Notably, developers are strategically shifting their focus towards the middle-income segment (homes priced between INR 50 lakh and INR 75 lakh), which represents the largest pool of potential buyers and has witnessed the strongest growth. Major metros like Mumbai Metropolitan Region, Bengaluru, and Pune are leading the charge, contributing a significant portion of sales - 47,388 units or 64% of the total 74,486 units sold.
Interestingly, the luxury segment (homes priced above INR 3 crore) has grown to 11% of sales from just 5% in the first quarter of 2022. However, the mid-income segment remains the dominant force, holding the largest share of sales at INR 50 lakh-INR 75 lakh.
Industry analysts predict continued growth throughout 2024, with residential sales expected to reach between 300,000 and 315,000 units. This positive outlook is fueled by the strong economy, rising demand for mid-tier homes, and the potential for lower interest rates later in the year.
While the unsold inventory across the seven major cities (including Mumbai, Bengaluru, and Hyderabad, which account for 66% of the total inventory) increased 1% on a sequential basis, the expected time to liquidate the stock remains stable at 2.1 years. This suggests a healthy market where supply is keeping pace with demand.
Looking ahead, potential buyers should exercise caution and conduct thorough research before investing. Consider factors like location, project quality, developer reputation, and long-term affordability when evaluating a property to ensure a sound investment decision.
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