India Housing Sales Hit 10-Year High in H1 2024: Knight Frank

New Delhi, July 4 (PTI) Indian real estate market remained buoyant in January-June this year, with housing sales hitting an 11-year high at 1.73 lakh units and office demand at a record 34.7 million square feet across eight major cities, according to Knight Frank.

On an annual basis, housing sales rose 11 per cent to 1,73,241 units while leasing of office space grew 33 per cent to 34.7 million square feet during January-June this year across eight major cities.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, "India's real estate market has been buoyant in the last few quarters owing to the strong economic fundamentals and stable socio-political conditions."

As a result, the residential and office segments have recorded decadal-high numbers, he told reporters in a virtual press conference on Thursday.

He noted that premium housing formed 34 per cent of all sales in the first half of 2024.

"Concurrently, India's status as one of the fastest-growing large economies has positively impacted office demand. India faces businesses and GCCs taking the lead positions in transactions. Based on our expectation of continued stability in the socio-economic and political conditions and the current trajectory of growth, we anticipate a strong finish to the year 2024 with both residential and commercial office transactions noting record highs."

During Jan-June 2024, housing sales in Mumbai increased 16 per cent annually to 47,259 units while leasing of office space in the city surged 79 per cent to 5.8 million square feet.

In Delhi-NCR, housing sales declined 4 per cent to 28,998 units, but office space demand grew 11.5 per cent to 5.7 million square feet.

Bengaluru saw a 4 per cent growth in housing sales to 27,404 units and a 21 per cent rise in office demand to 8.4 million square feet.

In Pune, the housing sales increased 13 per cent to 24,525 units while leasing of office space rose 88 per cent to 4.4 million square feet.

Chennai witnessed a 12 per cent growth in sales of residential properties to 7,975 units, but the city witnessed a 33 per cent fall in office demand to 3 million square feet.

In Hyderabad, the housing sales went up 21 per cent to 18,573 units, while the office demand soared 71 per cent to 5 million square feet.

Kolkata witnessed a 25 per cent growth in housing sales to 9,130 units. The city saw a 23 per cent rise in leasing of office space to 0.7 million square feet.

In Ahmedabad, the sales of residential properties during Jan-June rose 17 per cent annually to 9,377 units. The office space leasing jumped multi-fold to 1.7 million square feet.

Commenting on the report, Gurugram-based realtor Signature Global Chairman Pradeep Aggarwal said the demand for residential properties across various price points remains strong, fuelled by high economic growth and infrastructure development.

"Developers are strategically launching new projects to harness this demand," he said.

Bhavesh Kothari, Founder & CEO, Property First Realty, said, "The growing desire for homeownership among potential buyers and steady mortgage rates that help home buyers plan their finances well in advance are majorly driving this growth trend."

Additionally, he said the positive buyer sentiment and the rising tide of NRI investment in India's residential sector are also instilling confidence in developers.