India Realty Trend: The Indian residential real estate market saw robust momentum in the first quarter of 2024, driven by sustained high demand, according to the latest residential marketbeat report by Cushman & Wakefield. The report highlights the significant contributions of the high-end and luxury segment to the sector's growth, while also shedding light on trends across various cities.

Continued Growth Fueled by High Demand

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Total unit launches across the top 8 cities amounted to 69,000, with Mumbai and Pune leading the pack, accounting for 28% and 16% of contributions respectively. Despite a modest 7% decline from Q4 2023, the figures remained above the average quarterly launches observed in 2022, indicating continued positive momentum in the sector.

High-End and Luxury Segment Reigns Supreme

The report underscores the dominance of the high-end and luxury segment, capturing approximately 34% of launches in Q1 2024. This trend, reflective of evolving homebuyer aspirations, has steadily increased from 13-14% in 2019 to over 30% post-2022. Meanwhile, the mid-segment remains the volume leader, accounting for over 50% of launches.

Shift Towards Established Developers

A significant trend highlighted in the report is the increasing role of established developers in driving residential launches. Over 38% of Q1 2024 launches originated from listed and reputed developers, signaling a shift towards prioritising quality and trust over solely price-driven decisions among homebuyers.

The report provides insights into key developments in major cities:
National Capital Region (NCR): High-end and luxury housing captured 61% of total launches, with significant contributions from Gurugram and Noida.
Mumbai: Mid-segment dominated launches, with notable growth in re-development projects.
Bangalore: Branded and listed developers contributed significantly, although slightly lower than previous quarters.
Kolkata: Anticipated increase in residential unit launches due to government incentives.
Chennai: Significant growth in mid-segment launches, with notable expansion in high-end and luxury segments.
Pune: High-end and luxury units constituted a significant proportion of total launches, with substantial growth in capital values.
Ahmedabad: Steady demand for premium housing units drives growth in high-end and luxury segment.

Shalin Raina, Managing Director of Residential Services at Cushman & Wakefield, commented on the Q1 2024 numbers, emphasising the growing demand for high-end and luxury properties. He expects this momentum to continue throughout the fiscal year, driven by modern homebuyers' aspirations for premium living spaces.