In 2024, the Indian real estate sector experienced remarkable growth and transformation, characterized by a surge in demand across various segments, particularly in luxury housing and institutional investments.
Key Highlights of Indian Real Estate in 2024
Strong Sales and Record Leases
The residential market witnessed robust activity, with over 225,000 units sold in the first nine months of the year. This was bolstered by the launch of 215,000 new projects, indicating a vibrant market responding to consumer demand.
The office leasing sector also thrived, with 53.3 million square feet leased throughout the year. Major cities like Bengaluru, Hyderabad, and Pune led this growth, reflecting strong demand for office spaces.
Luxury Market Boom
A significant shift towards luxury properties was evident, with homes priced between ₹10 crore and ₹80 crore seeing skyrocketing demand. This trend was driven by high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs), who increasingly favored spacious homes with modern amenities.
The luxury segment's sales rose dramatically, accounting for 16% of overall residential sales, up from just 6% in 2019. This shift highlights a growing preference for premium living environments among buyers.
Institutional Investments Surge
Institutional investments in Indian real estate reached a record USD 8.87 billion, marking a 51% increase from the previous year. Foreign investors contributed significantly, accounting for 63% of total investments, with the residential sector attracting the largest share at 45%.
The number of investment deals also rose sharply, increasing by 47% compared to 2023. This indicates a strong recovery and confidence in the Indian real estate market post-pandemic.
Home Loan Growth
Home loan deployment grew by 18% year-on-year as of September 2024, further indicating a rising inclination towards homeownership amidst favorable economic conditions and consumer confidence.
Conclusion
Overall, 2024 marked a pivotal year for Indian real estate, showcasing resilience and adaptability in a changing economic landscape. The combination of strong residential sales, significant institutional investments, and a pronounced shift towards luxury living has positioned India’s real estate sector for continued growth into 2025 and beyond.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions. The content of the above article is based on references, learnings and interpretations. Invest Corners does not guarantee the accuracy of the information provided.
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