Home sales surged by 9 per cent year-on-year (y-o-y) to 86,345 units in the first quarter (Q1) of 2024, with Mumbai leading the list with 23,743 units sold, marking a 17 per cent increase y-o-y, according to a recent report by Knight Frank India.
According to last six years’ data, the total home sales for the quarter is only second to Q4 2023 figures.
Properties priced Rs 1 crore and above constituted 40 per cent of the sales in Q1 2024. Units priced between Rs 50 lakh and Rs 1 crore saw a 6 per cent y-o-y decline, with 28,424 units sold, while units under Rs 50 lakh saw a 10 per cent y-o-y decline, with 23,026 units sold.
Mohit Jain, managing director, Krisumi Corporation said: “The surge in demand for upscale residences is indicative of a broader societal trend towards prioritising comfort, convenience, and lifestyle enhancement. In response to this evolving landscape, developers are leveraging innovative designs, cutting-edge technologies, and premium services to create residential developments that exceed traditional expectations.”
Commercial Space
In comparison, office space transactions surged a whopping 43 per cent y-o-y during the same period (Q1 2024), reaching 16.2 million square feet (mn sq ft) across the top-eight markets in India, the report said.
Bengaluru was the front-runner in the demand for office space, accounting for 3.5 million sq ft of transactions, constituting 22 per cent of the total office take-up during Q1 2024. Delhi national capital region (Delhi NCR) came in at a close second, accounting for 3.1 mn sq ft of transactions. Hyderabad also showed consistent growth, achieving a post-pandemic high of 3 mn sq ft during this period.
The main reason for the surge in office space transactions was the uptake in office space by India-facing businesses and global capability centres (GCC), which accounted for 5.9 mn sq ft and 5 mn sq ft of transactions, respectively. Flex space or flexible working spaces also maintained its momentum, accounting for 23 per cent of total transactions.
Further, the office market recorded 13 million sq ft of completions in Q1 2024, with rents either stabilising or experiencing robust growth in y-o-y terms. Vacancy levels dipped to 15.8 per cent, reflecting a consistent lag in fresh supplies compared to transaction volumes, Knight Frank India said in a release.
Shishir Baijal, chairman and managing director, Knight Frank India said he anticipates continued growth driven by stable economic policies and favourable domestic conditions. The real estate market is expected to maintain its upward trajectory, fuelled by expanding business operations and a resurgence in demand for office spaces as companies revert to conventional setups, he said.
“The residential segment particularly witnessed a significant surge, propelled by continued growth in sales in the higher price category of Rs 1 crore and above. Many companies are now reverting to conventional office setups, either reducing or discontinuing their work-from-home policies, further boosting demand,” he said in a statement.
Aman Sarin, director and chief executive officer, Anant Raj said: “This continued growth can be attributed to several key factors, including the stability of Interest rates, a favourable economic environment, and the rapid expansion of infrastructure, particularly in major urban centres, such as Delhi NCR and Mumbai Metropolitan Region (MMR).”
