Dec. 26, New Delhi, India: According to a survey by Nuvama, there was a notable increase in demand for real estate in India in November 2024, while the number of new property launches decreased.

The study emphasized a stark discrepancy between supply and demand patterns, which is fueled by the nation’s rising desire for upscale real estate.

Demand rises, launches decline…. According to the survey, “the continuous premiumization trend in India’s real estate market suggests that volume-value trends have diverged significantly.”

It emphasized that in November, supply and demand in the top seven cities fell 53% and 7% year-over-year (YoY), respectively, based on volume.

According to the survey, the premium and luxury housing categories have been the main drivers of growth, raising the average price of real estate in major cities. Average prices increased by an astounding 44% year over year in the NCR, with Kolkata following closely behind at 37%. Prices rose 14–17% year over year in areas like MMR and Bengaluru, while other cities saw increases of 6–9%.

“With the luxury/premium housing segment performing well, prices have surged in all major cities” according to the research.

The patterns, however, provide a different picture when analyzed by value. Demand showed a strong rise of 16 percent YoY, while the supply of properties by value decreased 44 percent YoY. The value of supply and demand increased by 9% and 13%, respectively, on a year-to-date (YTD) basis.

Additionally, the study reported a 5% YoY rise in unsold inventories by value. Despite this, the market’s available inventory decreased somewhat from 17 in October to 16 in November, indicating quicker market sales.

November witnessed a 2 percent month-over-month (MoM) and a 16 percent year-over-year increase in house sales by value.

Sales in the National Capital Region (NCR) increased by an astounding 151% year over year, with Chennai and Kolkata following closely after.

Nonetheless, the study made clear that Hyderabad’s sales had dropped. Most cities have seen an increase in sales value for the year 2024, with the NCR leading the way with a YoY increase of 68%. Bengaluru, Kolkata, and the Mumbai Metropolitan Region (MMR) all had sales value increases of 12–15% year over year.

According to Nuvama, the industry has significant potential for medium-term development, bolstered by better cash flows and growing demand for luxury residences, as long as real estate pricing remain appealing.