Housing sales in eight major Indian cities experienced a robust 5% year-on-year increase during the July-September 2024 quarter, totaling 87,108 units, driven primarily by a strong demand for premium homes, according to the latest report from Knight Frank India. This report, unveiled during a virtual press conference on Thursday, highlights a significant growth trajectory in the residential market, contrasting sharply with findings from Anarock and PropEquity, which indicated a decline in overall sales during the same period.

Record Sales in a Resilient Market

The Knight Frank report marks the highest quarterly sales recorded in 2024, with CMD Shishir Baijal noting that the surge is largely attributed to the increasing demand for premium properties priced above Rs 1 crore. “The momentum in the residential market has trended up well in 2024,” Baijal stated, emphasizing the strong consumer interest in upscale housing options.

Challenges in Affordable Housing

Despite the overall positive trend, Baijal expressed concerns regarding the affordable housing segment, which has faced challenges related to availability and affordability. Sales in this category have shown a decline, highlighting a bifurcation in the market where premium housing continues to thrive while budget-friendly options struggle.

City-Wise Performance Insights

Sales figures reveal a mixed bag across different regions:

Mumbai led the way with 24,222 units sold, marking a 9% increase year-on-year.

Bengaluru recorded the highest growth rate among major markets at 11%, with 14,604 units sold.

Pune saw a modest uptick of 1%, totaling 13,200 units.

Hyderabad reported a 9% rise, achieving 9,114 units in sales.

Ahmedabad and Kolkata demonstrated healthy growth, with increases of 11% (4,578 units) and 14% (4,309 units) respectively.

Chennai also showed a positive trend with a 6% rise to 4,105 units.

In stark contrast, the Delhi-NCR region experienced a downturn, with sales dropping 7% to 12,976 units compared to the previous year.

Outlook for the Future

As the real estate landscape continues to evolve, Knight Frank’s findings suggest a resilient market for premium homes, while the affordable housing sector may require strategic interventions to revitalize sales. Stakeholders are keenly observing these trends as they navigate a complex market landscape in the coming quarters.