Strong homebuyer demand and hardening property prices coupled with the general and state elections dented India’s residential growth momentum in 2024, according to ANAROCK.

The housing sales in the top seven cities saw a marginal 4 per cent decline in 2024, with approximately over 4.5 lakh units sold, compared to over 4.7 lakh units in 2023.

However, the overall sales value of housing units increased by 1 per cent year-on-year, rising from ₹4.88 lakh crore in 2023 to approximately ₹5.68 lakh crore in 2024.

The Mumbai Metropolitan Region (MMR) recorded the highest sales with with a 1 per cent yearly rise at over 1.5 lakh units in 2024. Pune followed closely, with around 81,090 units sold.

Explaining the trend, Anuj Puri, Chairman of ANAROCK Group, stated, “Apart from the dampening effect of general and assembly elections, project approvals slowed down markedly, impacting new housing supply. While sales also saw a marginal decline when compared to 2023, this was offset by a 16 per cent jump in the overall sales value, thanks to average price appreciation and increasing unit sizes.”

MMR and Bengaluru lead launches

The new launches in the top seven cities saw a 7 per cent annual decline, from approximately 4,45,770 units in 2023 to approximately 4,12,520 units in 2024. MMR and Bengaluru saw the maximum new launches, accounting for an almost 50 per cent of the new supply in the year.

On an annual basis, housing prices increased between 13-30 per cent across the top 7 cities, primarily due to increased input costs and strong homebuyer demand, the report noted.

Delhi-NCR recorded the highest yearly jump of 30 per cent in average residential price from ₹5,800 per sq ft in 2023 to nearly ₹7,550 per sq ft in 2024. The top 7 cities saw a 21 per cent yearly jump in average residential price from ₹7,080 per sq ft in Q4 2023 to over ₹8,590 per sq ft in Q4 2024.

Looking ahead, Puri anticipates that average residential price hikes will stabilise in the coming year, although steady growth is expected due to increased input costs and sustained demand. “2025 will also see generous new supply infusions by listed developers, who have significant inventory lined up. The elections and the slow project approval process had dented the new supply pipeline in 2024,” he added.