Housing sales declined by 5% in the July-September quarter across the top eight cities due to a fall in new supply and sharp increase in real estate prices. Only Delhi-NCR witnessed a 29% growth in sales during the period, an analysis by PropTiger showed.
New launches during the July-September quarter of 2024 also declined across cities except Delhi-NCR, according to โReal Insight Residential Reportโ by PropTiger.com, part of REA India.
A total of 96,544 units were sold in July-September, down 5% from 1,01,221 units sold during the same period in 2023. The number of new residential units launched in the top 8 markets fell 25% to 91,863 units from 1,23,080 units, it noted.
In the July-September quarter of 2024, Delhi-NCR saw a significant sales surge of 29% year-on-year (YoY), with 10,098 units sold compared to 7,800 in the same period last year.ย
Gurugram witnessed an 89% increase in housing sales in the third quarter of this year, the report showed.
Also Read: Real estate market trends: Are luxury housing sales sustainable in the long run?
Mumbai, while leading in overall volume, experienced a slight 1% dip, selling 30,010 units versus 30,299 in Q3 2023. Hyderabad faced a notable decline, with sales dropping 19% YoY to 11,564 units from 14,191 units, the report showed.
Bengaluru’s sales decreased by 11% YoY, with 11,160 units sold, down from 12,588 units in the same period last year. Similarly, Ahmedabad recorded a 9% YoY drop, with 9,352 units sold compared to 10,305 units in the previous year.
Increase in home prices impacts affordability leading to drop in sales
A sharp increase in home pricesโaveraging a nearly 20% increase across the top eight citiesโimpacted affordability leading to a 5% YoY drop in overall sales, the report noted.ย
New launches witnessed a more significant 25% YoY decrease compared to the same quarter in 2023. The number of new residential units launched in the top 8 markets decreased from 1,23,080 units in Q3 2023 to 91,863 units in Q3 2024, marking a significant 25% drop, it said.
“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,” said Vikas Wadhawan, CFO of REA India and Business Head of PropTiger.com
Also Read: Housing sales up 5% at 87,000 units across top 8 cities in Jul-Sep with Mumbai topping the list
It noted that 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.
โHowever, we expect buyers to gradually adjust to the new price realities. With the festive season kicking off with Navratri, renewed buyer interest and a spike in sales activity are anticipated. The market frenzy has slowed, creating a more stable environment for end-users. Developers, particularly in Hyderabad and Pune, have also recalibrated their supply strategies to align with shifting demand patterns, while Delhi NCR continues to display robust momentum in both sales and launches,โ he added.
Also Read: Buying a house in Navratri 2024? Real estate developers dole out offers but cash discounts few and far between
Launches increase only in Delhi-NCR
In Q3 2024, Delhi NCR witnessed a robust 76% YoY rise in new launches, with 11,955 units introduced, compared to 6,810 in Q3 2023, indicating strong developer confidence.ย
Gurugram saw an ย almost 184% rise in new launches compared to the same period (Q3) last year, the report showed.
Conversely, Mumbai saw a 13% drop in new supply, with 31,123 units launched versus 35,923 last year. Hyderabad experienced a sharp 58% YoY decline, with new launches falling to 8,546 units from 20,481 in the previous year. Pune’s new supply also contracted 36% YoY to 13,543 units from 21,287. Despite a quarterly rise, Kolkata saw a 61% YoY drop, launching just 1,516 units compared to 3,850 units in Q3 2023.
