<p>Bengaluru: <a href="https://www.deccanherald.com/tags/housing">Housing</a> sales rose 7 per cent year-on-year (YoY) in 2024 across India’s top eight cities to reach a 12-year high at 3.5 lakh units on better demand for premium homes amid stable mortgage rates, reported Knight Frank in a webinar on Tuesday amidst reports of a lull in housing demand.</p>.<p>The primary driver has been the shift in end-user attitudes toward home-ownership since 2020.</p>.<p>Keeping pace with demand, residential launches in terms of volume were also at a 12-year high, growing by 6 per cent YoY in 2024 to reach 3.7 lakh units.</p>.<p><strong>Changing definition of luxury</strong></p>.<p>Knight Frank pointed out that the definition of luxury is no longer properties priced above Rs 1 crore, but those costing above Rs 10 crore.This is also liable to change with time.</p>.<p>Launches of properties priced Rs 1 crore and above saw a five-fold increase from 36,000 units in 2019 to 1.8 lakh units in 2024. Conversely, launches in the sub-Rs 50 lakh category declined by 10 per cent between 2019 and 2024.</p>.<p>The higher priced segments drove housing momentum despite concerns of overheating, with the Rs 2-5 crore category witnessing an 85 per cent YoY growth, while the sub-Rs 50 lakh and Rs 50 lakh-1 crore segments saw declining or fatigued sales.</p>.Multinational's Global Capacity Centres bet big on Hyderabad as city records its best office transaction volumes in 2024 since 2020.<p><strong>Rising inventory</strong></p>.<p>Though sales have seen healthy growth, the unsold inventory has consistently increased since 2020 as supply levels have exceeded sales. Unsold inventory of higher priced properties rose above the market average, with the unsold inventory in units priced above Rs 1 crore growing by 38 per cent YoY. Still, seen in conjunction with the high sales velocity, this is not a matter of concern.</p>.<p>However, for the Rs 20-50 crore segment, supply is outstripping demand. Evidently, they are not selling at the same rate as they are being developed.</p>.<p><strong>Beeline to Mumbai</strong></p>.<p>Interestingly, developers from across the country are drawn to Mumbai, where selling one luxury house is equivalent to selling dozens in other cities.</p>.<p><strong>Office market</strong></p>.<p>It was also a landmark year for India’s office market, with gross leasing activity reaching 71.9 million square feet (msf).</p>.<p>While there may be a demand for 100 msf office space by 2026 or 2027, the segment’s growth is threatened by shrinking land supply with most of it getting taken by the booming residential development riding on higher premium, cautioned the consultancy.</p>.<p>India-facing business accounted for 36 per cent of total transactions at 25.9 msf, Global Capability Centres (GCCs) represented 31 per cent with 22.5 msf, and flex space operators leased 15.7 msf, a 52 per cent YoY growth.</p>.<p>Bengaluru recorded its historic-best office transactions of 18.1 msf in 2024 which was higher by 45.1 per cent over 2023.</p>
<p>Bengaluru: <a href="https://www.deccanherald.com/tags/housing">Housing</a> sales rose 7 per cent year-on-year (YoY) in 2024 across India’s top eight cities to reach a 12-year high at 3.5 lakh units on better demand for premium homes amid stable mortgage rates, reported Knight Frank in a webinar on Tuesday amidst reports of a lull in housing demand.</p>.<p>The primary driver has been the shift in end-user attitudes toward home-ownership since 2020.</p>.<p>Keeping pace with demand, residential launches in terms of volume were also at a 12-year high, growing by 6 per cent YoY in 2024 to reach 3.7 lakh units.</p>.<p><strong>Changing definition of luxury</strong></p>.<p>Knight Frank pointed out that the definition of luxury is no longer properties priced above Rs 1 crore, but those costing above Rs 10 crore.This is also liable to change with time.</p>.<p>Launches of properties priced Rs 1 crore and above saw a five-fold increase from 36,000 units in 2019 to 1.8 lakh units in 2024. Conversely, launches in the sub-Rs 50 lakh category declined by 10 per cent between 2019 and 2024.</p>.<p>The higher priced segments drove housing momentum despite concerns of overheating, with the Rs 2-5 crore category witnessing an 85 per cent YoY growth, while the sub-Rs 50 lakh and Rs 50 lakh-1 crore segments saw declining or fatigued sales.</p>.Multinational's Global Capacity Centres bet big on Hyderabad as city records its best office transaction volumes in 2024 since 2020.<p><strong>Rising inventory</strong></p>.<p>Though sales have seen healthy growth, the unsold inventory has consistently increased since 2020 as supply levels have exceeded sales. Unsold inventory of higher priced properties rose above the market average, with the unsold inventory in units priced above Rs 1 crore growing by 38 per cent YoY. Still, seen in conjunction with the high sales velocity, this is not a matter of concern.</p>.<p>However, for the Rs 20-50 crore segment, supply is outstripping demand. Evidently, they are not selling at the same rate as they are being developed.</p>.<p><strong>Beeline to Mumbai</strong></p>.<p>Interestingly, developers from across the country are drawn to Mumbai, where selling one luxury house is equivalent to selling dozens in other cities.</p>.<p><strong>Office market</strong></p>.<p>It was also a landmark year for India’s office market, with gross leasing activity reaching 71.9 million square feet (msf).</p>.<p>While there may be a demand for 100 msf office space by 2026 or 2027, the segment’s growth is threatened by shrinking land supply with most of it getting taken by the booming residential development riding on higher premium, cautioned the consultancy.</p>.<p>India-facing business accounted for 36 per cent of total transactions at 25.9 msf, Global Capability Centres (GCCs) represented 31 per cent with 22.5 msf, and flex space operators leased 15.7 msf, a 52 per cent YoY growth.</p>.<p>Bengaluru recorded its historic-best office transactions of 18.1 msf in 2024 which was higher by 45.1 per cent over 2023.</p>