In the third quarter of 2024, India's real estate market experienced a notable uptick, with a 5% increase in housing sales across the top eight cities. The period between July and September 2024 saw the sale of 87,108 units, as reported by Knight Frank India. This uptick signifies a steady recovery in the housing sector, with Mumbai leading the charge, achieving its best quarterly performance in over six years.
Mumbai, the epicenter of India’s real estate market, reported a 9% rise in sales, with 24,222 units sold during the quarter. This marked the highest number of home sales recorded in any city during this period and was Mumbai's most successful quarter since 2018. The city's robust demand for residential properties is being driven by favorable market conditions, competitive pricing, and a renewed interest in real estate as an investment avenue.
While Mumbai led in terms of absolute sales numbers, Kolkata recorded the fastest growth rate. The city saw a 14% increase in sales, with 4,309 units sold in Q3 2024. This rise is attributed to Kolkata’s affordable housing options and improved infrastructure, making it an increasingly attractive destination for homebuyers and investors alike.
Bengaluru, known as India's tech hub, also witnessed a strong 11% year-on-year (YoY) growth, with 14,604 units sold during the quarter. The city's real estate market continues to benefit from the influx of professionals and the expansion of IT companies, which has spurred demand for residential properties across various price segments.
In contrast to the positive trends seen in most cities, the Delhi-NCR region faced a slight downturn. Sales in this region dropped by 7% YoY, reflecting some regional challenges, including oversupply in certain areas and delays in project deliveries, which have impacted buyer sentiment. However, despite this decline, the overall market in Delhi-NCR remains resilient, with new developments and government initiatives expected to revive demand in the coming quarters.
In addition to the strong performance in the residential sector, India's commercial real estate market saw impressive growth during Q3 2024. Office space transactions surged by 18% YoY, with 19 million square feet of space absorbed. This represents the highest quarterly transaction volume since Q1 2018, underscoring the growing demand for office space as businesses expand and new companies set up operations in key cities.
Leading the commercial space transactions was Bengaluru, which accounted for a 28% share of the total volume, with 5.3 million square feet transacted. The city's reputation as a technology hub, coupled with its steady economic growth, has fueled demand for office spaces, especially from IT, startups, and multinational companies.
The first nine months of 2024 have proven to be highly successful for the Indian real estate market. In the residential segment, sales have reached a staggering 2.6 lakh units across the top cities. The demand for homes continues to be driven by factors such as increased affordability, low-interest rates, and a preference for owning property amid economic uncertainties.
Meanwhile, the office leasing market has recorded 53.7 million square feet of space absorbed so far in 2024. This reflects the growing demand for flexible and modern office spaces, with companies increasingly opting for locations that offer high-quality infrastructure and proximity to business hubs.
The Indian real estate market, particularly in the top eight cities, exhibits promising growth across residential and commercial sectors. Cities such as Mumbai, Kolkata, and Bengaluru lead in housing sales, while Bengaluru dominates the office space market. This optimism extends into the final quarter of 2024, signaling a positive outlook.
As the economy recovers, favorable conditions for both homebuyers and investors are expected to continue. Despite challenges in certain regions, like Delhi-NCR, the demand for quality real estate remains robust. This makes 2024 a critical year for the industry, with ongoing momentum anticipated.
