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India's housing market shows a dual trend as PropEquity reports an 18% quarter-on-quarter sales decline across major cities like Mumbai, Delhi NCR, and Bengaluru, amounting to 119,901 units sold in April-June 2024. However, year-over-year data reveals a marginal 2% dip from 2023. Hyderabad and Mumbai saw significant drops, while Delhi NCR bucked the trend with a 7% increase. Factors such as state elections and seasonal market dynamics may have influenced this variation. Despite lower sales, demand remains strong, outpacing new supply by 23%. Analysts anticipate market stabilisation as new launches and economic conditions evolve in upcoming quarters.
India's housing market is presenting a mixed picture, with recent data from PropEquity, a real estate data analytics firm, revealing both a decline in sales and continued underlying demand. Advertisement
Compared to the previous quarter (January-March 2024), housing sales across major Indian cities like Mumbai, Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Pune, Navi Mumbai, and Thane, dipped by 18%. This translates to a sale of approximately 119,901 units in the April-June 2024 quarter, down from 146,194 units sold in the first quarter.
However, when looking year-over-year, the decline is much smaller. The April-June 2024 quarter saw sales of 119,901 units compared to 121,856 units sold in the same quarter of 2023, representing a marginal dip of only 2%.
The impact of this sales dip is not uniform across all cities. Hyderabad and Mumbai witnessed significant declines of 36% and 25% respectively, compared to the previous quarter. While Bengaluru saw a 14% decline, and Kolkata experienced a 16% drop in housing unit absorption. In contrast, Delhi NCR defied the trend with a slight increase in sales of 7%, selling 10,198 units compared to 9,510 units in the first quarter.
Several factors may have contributed to the decline in sales during the April-June quarter. One possibility is the election period in some states, which might have led developers to delay launching new projects. Additionally, the second quarter is generally considered a slower period for the housing market compared to other quarters.
Despite the sales dip, there are signs of continued demand for residential real estate, particularly in Tier-1 cities. This is evidenced by the fact that sales have still outpaced new supply by 23%. PropEquity data shows that new housing supply also witnessed a decline of 7% on a quarter-on-quarter basis, with 97,331 units launched in Q2 2024 compared to 104,391 units in Q1 2024.
Experts like PropEquity's CEO and MD, Samir Jasuja, believe this significant drop in sales was primarily due to the high sales volume witnessed in Q1 2024, which was a historical peak. Jasuja also highlights the positive demand for residential real estate, and expects growth with increasing demand and new launches in the upcoming quarters.
The Indian housing market appears to be navigating a period of adjustment. While sales have dipped slightly, there are indications of healthy underlying demand. The performance of the market in the coming quarters will depend on factors like new project launches, overall economic conditions, and consumer confidence.
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