The year 2024 was marked by several  distinct trends in residential realty. Torbit Realty captures these trends  which  shaped real estate sector in general and residential real estate in particular. Vinod Behl

Preference For Home Ownership

The trend of home ownership gained momentum in 2024. Eighty percent home buyers prioritised owning a home, compared to 19% opting for rented accommodationThis sentiment is consistent across generations-79% of baby boomers, 80% of Gen X  82% of millennials and 71% of Gen Z favour home ownership .While 39% millennials and 36% Gen Z buy homes for end-use or upgradation , 44% baby boomers buy it for investment and retirement plans.

Rise of Luxury Housing

The year 2024 saw the unprecedented rise of premium and luxury housing amidst growing trend of  buyers looking for enhanced living experience seeking integrated facilities like gym, parks, spacious club, co-working spaces. There was a growing shift towards mid-range and luxury housing beyond metros and Tier 1 cities. In the first half of 2024, luxury homes priced at INR 1 crore and above accounted for 41% of total housing sales, up from 30% in the same period in 2023.

Home Ownership Through Mortgage

In 2024, mortgage was the most popular mode of owning a home. About half of potential home buyers  go for flexible loan tenures. According to RBI data, home loan deployment saw 18 percent YoY growth . With anticipated home loan interest rates cut in early 2025, the demand for bank credit by prospective home buyers will further go up.

Rise Of Niche Segments

The year 2024 saw the high growth of niche segments in residential real estate.  Amidst rise in luxury housing , the  trend of branded homes, holiday homes and  rental homes gained momentum in hill stations , beach destinations and religious destinations owing to the tourism boom. Due to affordability, there was a growing demand for co-living/student housing  and millennials even opted for branded co-living spaces. Senior living space saw a new trend of intergenerational homes gaining popularity as elders looked for better social interaction to beat loneliness.

Boost to Integrated Township Living

The growing popularity of integrated townships was seen in 2024 as youngsters increasingly opted for such developments for holistic lifestyle living  and to maintain  work-life balance and seniors feeling more at home and emotionally  secure in an environment of vibrant community living.. Inorder to meet the growing demand , more and more real estate developers are now taking to township development.

Decline in Affordable Housing

The rapid rise in luxury housing in 2024, was at the cost of affordable housing. Affordable housing suffered on both supply and demand fronts. Due to the runway rise in home prices, homes became unaffordable. At the same time, developers shied away from developing affordable homes citing low margins. Consequently, the share of affordable homes went down to 21% , from 38% in pre-Covid days.

Dominance of Branded & Listed Developers

The year 2024 saw the dominance of big , branded listed players as home buyers reposed greater faith in them because of their track record in executing and delivering quality products in time. This is clearly evident from statistics. The 26 listed realty firms sold INR 35000 crore worth properties in Q2 FY 25..