Housing sales down 6% in April-June quarter; new supply remains flat in top 8 cities: PropTiger

The dip in housing sales was on account of homebuyers deferring plans to purchase property and developers their new launches due to the elections

Published on: Jul 11, 2024, 17:14:01 IST

By HT News Desk

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Housing sales in the top eight cities fell 6% during the April-June period of 2024 compared to the previous quarter and new launches came down with both homebuyers and developers adopting a wait-and-watch approach ahead of the Lok Sabha polls, a quarterly analysis by digital real estate brokerage firm PropTiger.com showed.

Housing sales in the top eight cities fell 6% during the April-June period of 2024 compared to the previous quarter even as new supply tapered with both homebuyers and developers adopting a wait-and-watch strategy ahead of the Lok Sabha polls (HT Archive)

The quarterly decline in sales was seen across cities, barring Bengaluru that saw an increase of 30% and Delhi-NCR by 10%.

The eight cities profiled in the report included Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai and Thane) and Pune.

Also Read: Housing sales in top 30 Tier 2 cities increase by 11% in FY2024 on the back of high demand: PropEquity

As per the data shared by the property brokerage platform, housing sales fell 6% to 1.13 lakh units during the April-June period from 1.20 lakh units in the preceding January-March quarter.

However, housing sales increased by 43% in the April-June quarter from 80,245 units in the year-ago period, showed the quarterly report titled ‘Real Insight Residential – April-June 2024’.

“Demand for homes moderated during the April-June period on account of the general elections even though consumer sentiment continued to remain positive with regard to the real estate investments on the back of strong fundamentals," said Vikas Wadhawan, Group CFO, REA India, and Business Head, PropTiger.com

Also Read: Bengaluru’s housing sales register 4% growth in H1 2024; homes priced at ₹1 crore and above witness 76% annual growth

"We are expecting a pro-investment Union Budget after the formation of a new government at the Centre and believe that sales would strengthen in the coming quarters, especially during the festive months,” he said.

NCR and Bengaluru buck the trend, witness increase in sales

Bengaluru and Delhi-NCR, however, witnessed an increase in sales. The garden city saw a 30% increase in sales to 13,495 units from 10,381 units. Availability of ready-to-move-in homes in Delhi-NCR was the key reason for an uptick in sales. It witnessed an increase of 10% in sales to 11,065 units from 10,058 units.

New supply fell marginally 1% to 1,01,677 units during the April-June quarter from 1,03,020 in the January-March period.

As per the quarter-on-quarter data, the housing sales in Ahmedabad fell 26% to 9,500 units in April-June from 12,915 units during January-March this year. Sales of residential properties in Chennai fell by 10% to 3,984 units from 4,427 units. Housing sales in Hyderabad fell 14% to 12,296 units from 14,298 units. In Kolkata, the sales decreased to 3,237 units from 3,857 units.

Also Read: Luxury homes above ₹1 crore witness 41% growth in sales; affordable housing sales decline

Mumbai Metropolitan Region (MMR) witnessed an 8% decline in housing sales to 38,266 units from 41,594 units. Housing sales in Pune dipped 5% to 21,925 units during April-June from 23,112 units in the preceding quarter.

Only half the cities chosen in the analysis showed a fall in new launches while the remaining showed an increase. From 1.13 lakh housing units in Q2 2023, new launches dipped 11% year-on-year in Q2 2024. MMR remained the biggest contributor to new supply in the June quarter, followed by Pune (22% share) and Bengaluru (12% share), the report showed.

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