India's property market hits ₹4L cr in 2024; Western region leads

The Indian property market continued its upward momentum in 2024, with 5.77 lakh residential transactions recorded across primary and secondary markets, 4% higher as compared to 2023. The total value of these transactions exceeded Rs 4 lakh crore, a 2% year-on-year (YoY) growth over 2023.

The western region emerged as the dominant force in India’s property market, with cities such as Mumbai, Thane, Navi Mumbai, and Pune accounting for 61% of registered transactions and 69% of the total sales value. In the southern region, Bengaluru and Hyderabad contributed 25% of the total transactions. Bengaluru recorded nearly 0.8 lakh registrations, though a slight dip was observed due to the E-khata rollout. Hyderabad’s performance continued its upward trajectory, achieving 80% of Bengaluru’s volume and cementing its position as a key real estate hub.

The Indian residential real estate market has entered a promising upcycle post-pandemic, bolstered by pent-up demand and a stronger sentiment for homeownership, says Tanuj Shori, founder and CEO, real estate platform Square Yards. "Over the past two to three years, the sector experienced exceptional growth, which has naturally moderated in 2024. Having said that, the numbers speak volumes – annual sales have exceeded 5 lakh units and Rs. 4 lakh crore in gross value, well above pre-2020 averages."

Shori says this is not a slowdown but a natural part of the cycle, reflecting a maturing market ready for its next wave of growth. "In 2025, we foresee residential demand and supply to grow in close ranges, setting the stage for steady, sustainable progress.”

Residential Trends 2024

The sustained demand drove property price growth in 2024. While western and southern cities led in transaction volumes, northern cities like Gurugram saw price escalations. Gurugram saw a 132% growth in property prices since 2019, driven by the increasing demand for luxury and ultra-luxury properties. Key areas within the city recorded even higher price spikes.

Following Gurugram, Greater Noida and Noida experienced a 67% increase in property prices over the past five years. The upcoming Jewar Airport has boosted buyer interest in these areas, with improved connectivity and anticipated economic opportunities acting as major drivers.

New Supply Trends 2024

Developers launched over 3.9 lakh new units and delivering more than 4 lakh units across major cities in 2024. Homebuyers’ preferences for gated communities and lifestyle-oriented amenities prompted developers to align their offerings accordingly. Both local and national developers adopted cutting-edge technology and innovative designs to cater to evolving customer demands.

The NIFTY Realty Index, which tracks the performance of 10 leading real estate stocks, emerged as the top-performing sectoral index on the NSE in 2024, registering a 40% gain year-to-date.

Outlook 2025

The outlook for 2025 remains optimistic, with over 3.6 lakh units expected to be delivered across major Indian cities, according to Square yards. Top listed developers are already working towards completing an ambitious pipeline of around 300 million sq. ft. for FY2025. The robust pipeline is expected to further boost transaction volumes and cater to diverse buyer preferences.

A positive economic environment, coupled with shifting lifestyle preferences, is likely to sustain the momentum in the coming year.