After a 2-year bull run, home sales are down 11%, property prices up by 23%
Source: Business Standard
India’s real estate market witnessed an eleven per cent decline in housing sales during the third quarter of 2024, according to a report by ANAROCK Research. While the top seven cities (NCR, MMR, Bengaluru, Pune, Hyderabad, Kolkata, and Chennai) accounted for 80% of total sales, Mumbai Metropolitan Region (MMR) remained the top-performing market with 36,190 units sold, despite a 13% quarterly decline.
Bengaluru, Pune, Hyderabad, Kolkata, and Chennai also experienced declines in sales compared to the previous quarter and year. Available inventory across the top 7 cities decreased by 2% on a quarterly basis to approximately 5,64,415 units.
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” After a 2-year bull run, residential real estate activity across the top cities stabilized in Q3 2024 – typically a slow quarter due to the monsoon and perceived inauspiciousness. Latest data reveals that housing sales across the top 7 cities declined by 11% annually, clocking in at approx. 1,07,060 units in Q3 2024 against approx. 1,20,290 units in Q3 2023. However, sales continued to outstrip new supply in Q3 2024,” revealed the Anarock report.
Key highlights:
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1.07+ lakh units sold across the top 7 cities in Q3 2024, against 1.20+ lakh units back in Q3 2023 -
MMR saw highest sales of approx. 36,190 units, followed by Pune with approx. 19,050 units; together, these cities accounted for 52% of total sales in Q3 2024 -
New supply also witnesses a 19% drop, falling below the 1 lakh mark for 1st time since Q1 2023 -
MMR tops new supply with approx. 29,615 units launched in Q3 2024, followed by Bengaluru with approx. 15,915 units -
Share of new luxury homes supply (priced >Rs 1.5 Cr) highest at 33%; affordable housing supply share dips to its lowest at 13% -
Existing inventory across the top 7 cities declines 8% annually – from 6.10+ lakh units in Q3 2023 to 5.64+ lakh units in Q3 2024 -
Avg. residential prices in top 7 cities saw double-digit growth of 23% in Q3 2024 against Q3 2023: Hyderabad saw highest 32% annual growth; Bengaluru & NCR see 29% rise each
All the top cities individually recorded a dip in housing sales
The top 7 cities also witnessed a drop in new housing supply, with approx. 93,750 units launched in Q3 2024 against 1,16,220 units in the corresponding period in 2023 – a 19% annual drop.
In terms of budget segments, the >Rs 1.5 Cr luxury housing segment witnessed the highest new supply of 33%, followed by the premium (Rs 80 lakh – Rs 1.5 crore) segment with a 30% share. The mid segment (Rs 40– 80 lakh) contributed a 23% share of the total new supply during the quarter, while the affordable segment’s share fell further to just 13% – the lowest in a quarter.
Average residential prices in the top 7 cities collectively saw double-digit growth of 23% in Q3 2024 against Q3 2023. Hyderabad recorded the highest 32% annual growth, followed by Bengaluru and NCR with 29% increases each.
“Due to escalating input costs as well as significant sales growth, average residential property prices across the top 7 cities collectively rose by 23% annually – from Rs 6,800 per sq. ft. in Q3 2023 to Rs 8,390 per sq. ft. in Q3 2024. Among the top 7 cities, Hyderabad saw the highest 32% jump in average prices. On a quarterly basis, average prices in the top 7 cities rose by 4%,” noted the report.
““Housing sales in the third quarter tapered down amid high prices and the monsoon season. “As always in this period, the ‘shraad’ period also suppressed demand to an extent as many Indians defer home buying in this period. Overall, the housing market is stabilizing after creating a new peak in Q1 2024,” said Anuj Puri, Chairman – ANAROCK Group.
Housing Sales Overview
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NCR, MMR, Bengaluru and Pune together accounted for 80% of the sales in the quarter. -
MMR recorded the highest sales among the top 7 cities in Q3 2024, with approx. 36,190 units sold – a quarterly decrease of 13% and a 6% yearly drop -
Pune saw approx. 19,050 units sold in Q3 2024, a decrease of 10% over Q2 2024 and a 17% annual decline over Q3 2023 -
NCR saw approx. 15,570 units sold in Q3 2024, a marginal decline of 2% over last year and of 6% on a quarterly basis -
Bengaluru sold approx. 15,025 units in Q3 2024, a quarterly and yearly decline of 8% each -
Hyderabad recorded approx. 12,735 units sold in Q3 2024, decreasing by 16% over Q2 2024 and 22% over Q3 2023 -
Kolkata saw approx. 3,980 units sold in Q3 2024, declining by 14% over the previous quarter and by 25% over the corresponding quarter in 2023 -
Chennai saw approx. 4,510 units sold during the quarter- declining by 10% quarterly and by 9% annually
First Published: Sep 30 2024 | 11:00 AM IST
