India’s residential real estate market continues its strong upward trajectory, as highlighted in the India Housing Report – Q3 CY’24 by CRE Matrix. The quarter reflects a market marked by rising property values, resilient demand, and evolving buyer preferences across major cities. With significant growth in transaction value despite a slight dip in volumes, the report underscores a shifting landscape driven by premiumization and long-term investment confidence.
Strong Growth in Overall Market Value
By the end of Q3 CY’24, the total value of residential units sold across major cities reached an impressive ₹4,266 billion. This represents a significant year-on-year growth, with a 23% increase in the value of units sold compared to Q3 CY’23.
Interestingly, this growth comes despite a ~5% decline in the number of units sold, indicating a clear rise in property prices and ticket sizes.
Delhi-NCR Leads, Pune Tops in Volume
Regional performance reveals distinct trends:
- Delhi-NCR emerged as the top market by value, recording ₹41,219 crore in Q3 alone and contributing nearly 30% of total sales.
- Pune led in transaction volume, accounting for about 20% of total registrations.
- Hyderabad followed closely with a 17% share in units sold.
Mumbai and Delhi-NCR together contributed nearly 49% of the total sales value, reinforcing their dominance in high-value transactions.
Rising Prices Driving Market Dynamics
One of the most defining trends this quarter is the clear divergence between value and volume in the housing market. While the number of homes sold has seen a slight decline, the overall transaction value has risen sharply—pointing to a steady increase in property prices.
This shift reflects a growing preference for premium and higher-ticket homes, pushing the average price per unit to around ₹1.4 crore. At the same time, it underscores strong buyer confidence, with homebuyers continuing to invest in real estate as a long-term asset despite rising costs.
City-Level Insights
Mumbai
Mumbai recorded a ~29% growth in value year-on-year, with ₹26,824 crore in sales for Q3 CY’24. The city has already achieved ~86% of its CY’23 sales value, signaling sustained momentum.
Thane
Thane remained stable with consistent demand. Sales value (~₹8,262 crore) remained largely unchanged YoY, indicating steady buyer interest and market maturity.
Pune
Despite a ~13% drop in units sold, Pune’s market continues to be robust, with strong annual performance and high absorption levels.
Bengaluru
Bengaluru saw a long-term surge, with a 1.72x increase in value since CY’21, reaching ₹62k crore by Q3 CY’24, despite short-term fluctuations.
Hyderabad
Hyderabad maintained a high average quarterly sales (~₹28k crore), although unit sales declined slightly, again pointing to rising property values.
Kolkata
Kolkata recorded strong growth, with a ~35% increase in value and a notable rise in transaction volumes, making it one of the fastest-growing markets this quarter.
Supply Trends and New Launches
The number of new units launched has shown fluctuations across cities, reflecting cautious developer sentiment amid rising prices. However, key projects across markets continue to see strong absorption, particularly in integrated townships and premium developments.
Key Takeaways
- Value growth outpacing volume indicates a price-driven market
- The premiumization trend is gaining momentum across cities
- Delhi-NCR and Mumbai dominate value, while Pune leads in volume
- Demand remains resilient, even amid rising prices
With one quarter remaining in CY’24, the housing market is poised to surpass last year’s benchmarks in several cities. Rising incomes, urbanization, and aspirational buying are likely to sustain demand, even as affordability becomes a key factor to watch.
The Indian housing market is maturing, with a clear shift toward value-driven growth and demand for premium housing.
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