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Housing sales in India's top nine cities fell below 1 lakh units for the first time since Q3 2021, with 94,864 units sold in April-June 2024-a 19% drop year-on-year, says PropEquity. New launches also fell 30% to 82,027 units. Cities like Mumbai, Thane, Pune, Hyderabad, and Navi Mumbai saw steep declines, while Bengaluru and Kolkata had milder drops. Delhi-NCR and Chennai bucked the trend with sales rising 16% and 9%, respectively. Analysts suggest the slowdown signals a market correction, with developers cautious amid unsold inventory and changing buyer behaviour. The trend reflects an evolving landscape in India's post-pandemic housing market.
The housing market in India's top nine cities has registered a notable downturn in the April-June quarter, with sales falling below the critical 1 lakh unit threshold for the first time in nearly three years. As per data released by real estate analytics firm PropEquity, total residential sales across these cities stood at 94,864 units, representing a sharp 19% decline from the 1,16,432 units sold during the same period last year. Advertisement
Samir Jasuja, Founder and CEO of PropEquity, highlighted that this is the first time since the third quarter of 2021 that housing sales have dipped below the 1 lakh mark, indicating a clear departure from the post-pandemic recovery trend that had sustained until late 2023. He also pointed out that the supply side has remained consistently weak, with fresh launches falling short of the 1 lakh mark for the fourth consecutive quarter.
During the quarter under review, new residential supply dropped steeply by 30%, with only 82,027 units launched as compared to 1,17,208 units during the corresponding period last year. Analysts believe the dip in launches can be attributed to developers adopting a cautious approach amid shifting buyer sentiment and concerns around unsold inventory in certain micro-markets.
A city-wise breakdown reveals the unevenness in sales across regions. Mumbai saw one of the sharpest declines, with a 34% fall in housing sales - from 12,114 units last year to just 8,006 units this quarter. Thane mirrored this trend with another 34% decline, clocking 14,832 units as against 22,512 previously. Pune also reported a substantial drop of 27%, with total units sold falling from 23,429 to 17,196.
In the southern markets, Hyderabad recorded a 20% year-on-year decline, closing the quarter at 11,815 units, down from 14,704 units. Bengaluru showed more resilience, with a relatively modest drop of 6%, selling 14,676 units compared to 15,582 last year. Kolkata's market also softened slightly, reporting an 8% decline to 4,449 units.
The western suburb of Navi Mumbai, which had shown consistent growth in previous quarters, also witnessed a 17% reduction in sales volumes, falling from 8,224 units to 6,833 units.
However, not all markets recorded a decline. The Delhi-NCR region emerged as a strong performer this quarter, posting a 16% growth in sales up from 10,114 to 11,703 units. Chennai too defied the slowdown with a 9% increase, where residential transactions rose from 4,927 to 5,354 units.
PropEquity, operated by NSE-listed P.E. Analytics, is a real estate data intelligence platform that tracks more than 40 Indian cities and has compiled over 17 years of market data. Its latest analysis points to an emerging phase of correction in the housing market, where both supply and demand have moderated after several bullish quarters.
The consistent underperformance in new launches suggests developers may be realigning their inventory strategies in anticipation of macroeconomic uncertainties and evolving buyer preferences. Meanwhile, growth in NCR and Chennai signals potential regional divergence that developers and investors may need to watch closely.
Source PTI
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