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Housing Sales momentum strong; expect the trend to sustain

ICICIdirect Research 06 Dec 2024 DISCLAIMER

Housing sales have remained healthy and hit a new nine months (January-September) peak in 2024 with close to 2.3 lakh homes across the top seven cities worth ₹ 3.8 lakh crore sold during this period. We highlight that between January-September 2023, 1.96 lakh residential units were sold in the top seven cities in India worth ₹ 3.49 lakh crore.  This implies that volume growth was ~17%, while value growth was 9% for the period. 

During the nine-month period of 2024, around 39 percent of the residential sales were in the mid segment (Rs 50 lakh-1 crore), closely followed by upper-mid segment (Rs 1-3 crore) holding a 35 per cent share, clearly reflecting a rising premiumisation.

For CY2024, top seven cities are expected to sell over 3,00,000 homes worth ₹ 5,10,000 crore of homes across 485 million sq-ft by the end of 2024

Going ahead, with rate cut likely and strong launches over the next 2 quarters, we expect strong sales momentum to continue into H1CY25.

In our coverage, we believe Brigade (well diversified across Resi, Commercial and Hotel) with TP 1450 and Mahindra Lifespace (Strong Business development targeting 5x sales in 5 years) with TP 610 are poised to witness superior growth

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