Thinking about buying a house soon? The latest data from PropTiger.com’s ‘Real Insight Residential Report’ reveals a 25% drop in new housing property launches and a 5% year-on-year decline in sales during the July-September quarter of 2024 across India’s top eight housing markets.
The report covers major housing markets including Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (covering Gurugram, Noida, Greater Noida, Ghaziabad, and Faridabad), MMR (Mumbai, Navi Mumbai, and Thane), and Pune.
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“The year-on-year decline in both sales and new launches reflects the market’s response to rising prices. While the demand and supply for homes moderated during the April-June period due to the General Elections and a temporary slowdown in the approval process during July-August, consumer sentiment remains positive. This is driven by strong market fundamentals, which continue to encourage real estate as a preferred investment avenue,” Vikas Wadhawan, CFO of REA India and Business Head of PropTiger.com said.
Key findings of the report
Sales: The report noted a decline in sales with 96,544 units sold in Q3 2024, compared to 1,01,221 units in the same period last year, marking a 5% drop.
New launches: New residential unit launches in the top eight markets fell to 91,863 units in Q3 2024 from 1,23,080 units in Q3 2023, showing a 25% decline.
What are the market dynamics?
“We are observing a healthy moderation in market activity, which is beneficial for end-users as it brings about sustainable growth,” said Wadhawan. “Over the last few quarters, prices have increased by 3% to as much as 50% in some prime localities of key markets, affecting immediate buying decisions. However, we expect buyers to gradually adjust to the new price realities,” he said.
He pointed out that with the festive season starting with Navratri, there’s renewed buyer interest and a likely increase in sales activity. “The market frenzy has slowed, creating a more stable environment for end-users. Developers, particularly in Hyderabad and Pune, have recalibrated their supply strategies to align with shifting demand patterns, while Delhi NCR continues to show strong momentum in both sales and launches.”
Major drops in sales in Mumbai, Hyderabad, and Pune
In the July-September quarter of 2024, Delhi NCR saw a 29% surge in sales year-on-year, with 10,098 units sold compared to 7,800 units during the same period last year. Meanwhile, Mumbai experienced a slight decline of 1%, with 30,010 units sold compared to 30,299 in Q3 2023.
Hyderabad recorded a 19% drop in sales year-on-year, with 11,564 units sold, down from 14,191 units in the same period last year. Bengaluru also saw a decrease of 11% in sales, selling 11,160 units compared to 12,588 units previously. Similarly, Ahmedabad’s sales fell by 9%, with 9,352 units sold compared to 10,305 units last year.
New launches comparison in 2024
Delhi NCR: New launches increased by 76% year-on-year in Q3 2024, with 11,955 units introduced compared to 6,810 units in the same period last year.
Mumbai: The market saw a 13% decrease in new residential units, with 31,123 units launched compared to 35,923 units in Q3 2023.
Hyderabad: Witnessed a sharp decline of 58% in new launches, with numbers dropping to 8,546 units from 20,481 in Q3 2023.
Pune: New supply fell by 36%, with 13,543 units launched compared to 21,287 units last year.
Kolkata: Despite a quarterly rise, the city saw a 61% year-on-year decline in new launches, with only 1,516 units introduced compared to 3,850 units in Q3 2023.
What lies ahead for buyers?
Wadhawan anticipates that the festive season will bring fresh energy to the market as developers introduce new offers, which may help revitalise buyer interest despite the recent challenges. “Developers are expected to roll out attractive offers, which could boost the market activity despite the existing challenges,” he said.
First Published: Oct 08 2024 | 4:12 PM IST
