Mumbai and Hyderabad Drive Record Residential Launches in H1 2024: JLL Report

Mumbai and Hyderabad spearheaded residential launches in H1 2024, contributing 43% of new units. India's residential real estate market hit a record with 160,000 units launched. Growth was driven by premium and luxury segments, while mid-segment projects saw a decline. Residential sales also peaked with 155,000 units sold.

Mumbai and Hyderabad led the charge in residential launches, collectively contributing around 43% of the overall new units, according to a JLL report. India's residential real estate market reached unprecedented heights in the first half of 2024, with approximately 160,000 residential units launched, marking a 5% rise over the previous record set in H1 2023.

This growth is attributed to a significant rise in premium and luxury segments. The premium residential segment, priced between Rs 3-5 crore, witnessed a 170% year-on-year (Y-o-Y) growth in new launches, while the luxury segment, with properties priced above Rs 5 crore, saw a 116% increase.

This shift results from developers adapting to changing buyer preferences post-pandemic, focusing on high-value projects. Mumbai alone accounted for 23% of the total, with 36,477 units, while Hyderabad followed with 31,005 units, representing 19%. Other notable contributors included Bengaluru with 29,153 units (18%) and Delhi NCR with 23,265 units (15%).

H1 2024 also saw the highest-ever half-yearly residential sales, with around 155,000 units sold, a 22% increase compared to the same period in 2023. Bengaluru and Mumbai were top performers, together accounting for 45% of the total sales volume. Bengaluru sold 35,543 units (23%), while Mumbai sold 33,744 units (22%).

During the first half of 2024, new launches varied across ticket sizes. Projects priced between Rs 1-3 crore dominated, accounting for 44% of new launches. The most significant growth was seen in the premium (Rs 3-5 crore) and luxury (above Rs 5 crore) segments, which grew by 169% and 116% Y-o-Y, respectively.

The mid-segment projects (priced between Rs 50 lakh -1 crore) experienced a 14% decline in new launches during the same period. Residential prices continued to climb across the top seven cities, with Y-o-Y increases ranging from 5% to 20%. Delhi NCR saw a 20% price jump, followed by Bengaluru with a 15% increase. High demand and limited under-construction inventory drove this price growth.

Looking ahead, 2024 is expected to be positive, with residential sales projected to reach 315,000 to 320,000 units. Established developers are poised to meet this demand by launching new projects in prime locations and growth corridors. The trend of high-value projects is likely to continue, driven by favorable economic conditions and positive buyer sentiment.

Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, remarked, "The current year has witnessed an impressive increase in both launches and sales momentum, with approximately 54-57% of last year's total volume achieved in just half a year."

He added, "Sales momentum has complemented the new launches with around 30% of the H1 2024 sales (154,921 units) being contributed by projects launched in the last six months."

Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), Head - Residential Services, India, JLL, noted, "A notable surge in launches within the premium segment (priced between INR 3-5 crore) and luxury segment (priced above INR 5 crore) compared to other segments was observed in H1 2024, with premium segment launches surging by 169% Y-o-Y, followed by a 116% Y-o-Y increase in luxury segment launches."

He added, "On the contrary, the mid-segment projects (priced between INR 50 lakh -1 crore) experienced a 14% Y-o-Y decline during the same period. This indicates developers' active response to high value homes demand among the target clientele."