Q1 2024 Residential Real Estate Report: Luxury Segment Dominates, Established Developers Lead

The residential real estate market in India witnessed a robust start in Q1 2024, driven by sustained high demand, according to the latest residential marketbeat report by Cushman & Wakefield. Luxury properties continued to lead the growth trajectory, with the high-end segment capturing a significant 34% of total launches, reflecting evolving homebuyer aspirations for enhanced lifestyles.

Total unit launches across the top eight cities amounted to 69,000, with Mumbai and Pune taking the lead with 28% and 16% contributions respectively. Despite a modest 7% decline from Q4 2023, this figure remained above the average quarterly launches observed in 2022, indicating a positive trend for the sector.

Established developers emerged as key players in driving residential launches, contributing over 38% of the total launches in Q1 2024. This trend underscores a shift in homebuyer priorities towards quality and trust over solely price-driven decisions, highlighting the need for reliable developers to meet the growing demand.

NCR witnessed a dominance of luxury launches, capturing 61% of total launches, with Gurgaon leading the way. Mumbai saw a 21% growth in residential launches, with mid-segment properties dominating at 61%. Bangalore recorded a 14% annual growth in launches, with branded developers contributing 53% of the total. Kolkata and Chennai both experienced significant growth in launches, with mid-segment properties leading the way.

In Pune, high-end and luxury units constituted 47% of total launches, marking the highest proportion in the city over the past five years. Ahmedabad witnessed a rise in luxury segment launches by approximately 35% over the average quarterly launches. Hyderabad, while experiencing a decline in overall launches, saw the high-end segment leading with a 52% share.

The surge in demand for luxury properties reflects a shift in homebuyers' desire for high-quality assets that align with their lifestyle aspirations. Established developers are poised to capitalize on this trend by delivering premium, customized living spaces. Looking ahead, this momentum is expected to continue throughout FY 2024/25.

In summary, the Q1 2024 residential real estate market reflects a dynamic landscape, with luxury properties and established developers playing pivotal roles in driving growth and meeting evolving consumer demands.