India’s residential home sales in 2024 declined for the first time since the pandemic owing to higher prices and rising borrowing costs of buyers, according to a report issued by property consultants Anarock on Monday, December 30.
India’s residential real estate market, estimated to be valued at over $300 billion, faced a marginal four percent drop in sales volumes during 2024, according to data released by Anarock.
After a 47 percent decline in 2020, housing sales had grown by 71 percent, 54 percent and 31 percent in 2021, 2022 and 2023, respectively, Anarock said.
“While demand for the affordable housing segment was weak, sales and launches of luxury homes remained strong,” Anarock chairman Anuj Puri said in the report.
“No doubt, the central and state elections played spoilsport to some extent, but it would also be fair to attribute at least some of the decline to the high base considering that in 2023 both new launches and sales had attained all-time-high peaks,” Puri said.
Going forward, he expects the housing market to stabilize in 2025, with muted growth in prices, as against an average 21 percent year-on-year rise in 2024.