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Housing sales decline by 11% YoY across top seven cities in Q3 2024; Mumbai, Bengaluru lead supply
India real estate: While major cities recorded an annual decline in fresh supply during Q3 2024, Delhi-NCR and Chennai saw 53% and 51% increase, respectively
Housing sales across the top seven cities in India declined by 11% annually during the July-September quarter of 2024 with approximately 1,07,060 units sold in Q3 2024 against approximately 1,20,290 units in Q3 2023.
Property consultancy Anarock on September 26 released data that showed that the Mumbai Metropolitan Region recorded the highest sales at around 36,190 units, followed by Pune with approximately 19,050 units. Cumulatively, the two western cities accounted for 52% of the total sales across the top seven cities in Q3 2024.
Meanwhile, with 93,750 units launched in Q3 2024, against 1,16,220 units in Q3 2023 – the top seven markets saw a 19% annual decline in new launches. On a quarterly basis, there was a 20% drop.
Also Read: Housing sales expected to decline by 18% in July-September annually across nine cities: PropEquity
As a result the available inventory across the top seven cities declined collectively by 2% on a quarterly basis, standing at approximately 5,64,415 units by the end of Q3 2024. On an annual basis, the inventory declined by 8%, the report said.
The report highlighted that new supply fell below the 1 lakh mark for the first time since the January-March quarter of 2023. However, while most cities saw new supply decline annually during the June-September period, NCR and Chennai saw 53% and 51% increases, respectively.
“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.
He, however, added that the fact that sales remained higher than launches indicates that the demand-supply equation remains robust.
The report noted that due to escalating input costs, as well as significant sales growth, average residential property prices across the top seven cities collectively surged by 23% annually - from ₹6,800 per sq ft in Q3 2023 to ₹8,390 per sq ft in Q3 2024. On a quarterly basis, average prices rose by 4%.
In the larger pie of fresh supply, the luxury housing segment priced over ₹1.5 crore bagged the highest share at 33%, followed by the mid segment ( ₹40– 80 lakh) at 23%. Meanwhile the share of affordable housing fell further to just 13% – the lowest in a quarter.
Also Read: New housing supply expected to witness 13% drop; sales down 2% y-o-y across top cities
Going forward, developers have several projects lined up during the festive quarter (October-December) during which the market is expected to see an uptick in demand, the report said.
"That said, growth in the upcoming quarters may not be as steep as seen in the last 1-2 years. Residential prices too seem to have peaked out and are now gradually stabilizing across cities. Developers are likely to roll out several offers and discounts during the upcoming festive quarter to attract buyers," said Puri.
How the numbers stack up
According to the report, the key cities contributing to new supply in Q3 2024 were - MMR (Mumbai Metropolitan Region), Bengaluru, NCR (National Capital Region), and Hyderabad - which together accounted for 78% of the total addition.
The Mumbai Metropolitan Region saw approximately 29,615 units launched in Q3 2024, marking an 18% yearly decrease and a 33% quarterly decline. Over 53% of the new supply during the quarter was added in the ₹40 lakh to ₹2.5 crore segment, the report said.
Bengaluru on the other hand added approximately 15,915 units in Q3 2024, reflecting a quarterly decline of 1% but 7% annual growth. Approximately 87% of the new supply was added in the mid and upper-mid-segment ( ₹40 lakh – ₹1.5 crore), the report said.
The National Capital Region saw a 53% yearly increase in new launches with approximately 14,130 units added in Q3 2024.
In terms of sales, MMR recorded the highest sales among the top seven cities in Q3 2024 with approximately 36,190 units sold during the period. It was closely followed by Delhi-NCR with around 15,570 units as Bengaluru came in third with sales of approximately 15,025 units.
