Luxury Housing Demand Surges Amid Election Year Challenges in India

India's housing sector faced growth challenges in 2024 due to elections and rising property prices, despite a surge in luxury housing demand. Residential sales dipped in major cities, offset by a 16% rise in sales value. Luxury housing continued its upward trend, with significant price increases recorded nationally.

India's residential real estate market experienced a turbulent year in 2024 as strong homebuyer demand and increased property prices clashed with the challenges of general and state elections. According to data from ANAROCK, housing sales in India's top seven cities dropped by 4%, totaling 459,650 units compared to 476,530 units in 2023. However, the sales value of these housing units surged by 16%, growing from Rs 4.88 lakh crore in 2023 to Rs 5.68 lakh crore in 2024.

The Mumbai metropolitan region led the sales with approximately 155,335 units, a 1% increase from the previous year. Pune followed closely with 81,090 units sold. Despite a decline in new property launches by 7%, totaling 412,520 units in 2024, Mumbai and Bengaluru remained central to new housing supply, contributing nearly half of the fresh stock.

Anuj Puri, Chairman of ANAROCK Group, described 2024 as a mixed year for the housing sector, citing election-related disruptions and slowed project approvals as significant hurdles. Although sales slightly fell from 2023, the overall sales value improved due to increased unit prices and sizes. Residential prices increased by 13-30% across major cities, with Delhi-NCR recording a notable 30% rise. The demand for luxury housing saw an exponential growth, with new high-end properties rising by 24% in 2024.

(With inputs from agencies.)