New Delhi [India], August 27 (ANI): The Indian residential real estate market achieved its best-ever performance in FY24, with the pan-India absorption rate surging by approximately 20.1 per cent year-on-year (YoY) in terms of area absorbed, according to a report by JM Financial
This surge in demand was accompanied by an 11.5 per cent YoY increase in supply, yet inventory levels in major cities fell to a record low of 12 months, indicating a tight market driven by sustained demand.
The sector recorded an average YoY price increase of 9.0 per cent, reflecting a combination of price escalations and a favourable product mix.
This contributed to an overall market growth of approximately 29 per cent during the fiscal year. Pre-sales for listed companies, particularly Tier 1 developers, saw a staggering 39.5 per cent YoY increase, highlighting their continued market share gains and the growing preference for branded and high-end products.
Bengaluru’s residential market was among the top performers, continuing its robust growth trajectory since FY21. In FY24, the city recorded a YoY sales increase of 18.1 per cent, with 102.7 million square feet (MSF) absorbed against 95.9 MSF launched.
The demand for residential properties in Bengaluru has consistently outpaced supply, resulting in an 8.3 per cent reduction in unsold inventory, which stood at 75.1 MSF by the end of FY24. Residential property prices in the city have grown at a compound annual growth rate (CAGR) of approximately 10.7 per cent over FY20-24, reflecting sustained demand and a vibrant market.
The National Capital Region (NCR) experienced a slight decline in residential sales in 4QFY24, with absorption down by 10.2 per cent YoY. However, the region still recorded a healthy 10.9 per cent YoY increase in sales for the entire fiscal year, with 79.4 msf sold.
The Mumbai Metropolitan Region (MMR) displayed strong momentum, with a 20.4 per cent YoY increase in sales for FY24, despite a 3.5 per cent YoY decline in new launches. Residential prices in MMR have seen a CAGR of 7.7 per cent over FY20-24, supported by steady demand, particularly in the premium segment.
Hyderabad’s residential market continued to thrive, with sales up by 28.0 per cent YoY in FY24, driven by a 20.0 per cent YoY increase in 4QFY24 alone.
The city’s growing appeal as a destination for lifestyle upgrades has fueled demand, although supply has also grown, leading to an increase in unsold inventory.
Conversely, Chennai saw a decline in sales by 9.5 per cent YoY in 4QFY24, despite a significant 50.0 per cent YoY increase in launches. The market recorded a 7.9 per cent YoY increase in sales for FY24, with property prices rising at a CAGR of 7.4 per cent over FY20-24.
With inventory levels at historic lows, rising disposable incomes, and a limited expansion in supply, the residential real estate sector is poised for continued growth in FY25.
Propequity forecasts an 18 per cent market growth, comprising a 12 per cent increase in volume and a 6 per cent escalation in prices. While supply is expected to grow moderately, inventory levels are likely to remain healthy due to strong absorption rates. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages
