Housing sales in Tier 1 cities up by 8% despite decrease in new launches by 19% in Q1 2024 - Hindustan Times
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Housing sales in Tier 1 cities up by 8% despite decrease in new launches by 19% in Q1 2024

Mar 28, 2024 09:58 AM IST

Thane and Pune led the market with 26,702 and 26,632 units sold in Q1 CY’24 respectively, having a combined market share of around 36% of the total absorption

The residential market in India has witnessed a growth in sales in Q1 2024, with an 8% year-on- year increase despite a decrease in new launches by 19% during the same period, a report by real estate data and analytics firm PropEquity has said.

The residential market in India has witnessed a growth in sales in Q1 2024, with an 8% year-on- year increase despite a decrease in new launches by 19% during the same period (HT PHOTO)
The residential market in India has witnessed a growth in sales in Q1 2024, with an 8% year-on- year increase despite a decrease in new launches by 19% during the same period (HT PHOTO)

The top three cities in terms of quarterly sales were Thane, Pune and Hyderabad. Thane and Pune led the market with 26,702 and 26,632 units sold in Q1 CY’24 respectively, having a combined market share of around 36% of the total absorption witnessed in the top 14 cities. Around 27,625 units were sold in Hyderabad and as many as 17,955 units were sold in Bengaluru and 10,643 housing units in Delhi-NCR in the same period, the report said.

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Also Read: Housing sales in top seven cities record 14% increase in Q1 2024; prices rise by 10-32%

The markets covered in the report included Thane, Pune, Hyderabad, Bengaluru, Mumbai, Navi Mumbai, Chennai, Kolkata and Delhi NCR.

According to the report, there has been a decline in the number of new residential units launched in India. In the first quarter of 2024, there was a 19% decrease in the number of new launches, with 1.05 lakh residential units compared to 1.29 lakh units launched in the same period last year.

Also Read: Luxury homes priced above 50 crore and above witness a 1.5X y-o-y increase; Mumbai dominates demand

“The residential market in India saw a significant growth in sales in Q1 2024, with an 8% year -on-year increase despite a decrease in new launches by 19% in the same time. I believe if the new launches had increased even further, we would’ve witnessed an all-time high absorption crossing the peak witnessed in sales/absorption in 2023. It is also observed that the absorption has surpassed new supply by a whopping 38%, which indicates a healthy demand in the market,” said Samir Jasuja, founder and managing director at PropEquity said.

Also Read: General Elections - Will the housing market witness another peak in 2024?

The inventory in the top 14 cities is expected to be around 4.81 lakh units in March 2024-end. On a year-on-year (Y-o-Y) basis, unsold stock saw a 16% decrease in Tier-1 cities, indicating that sales have surpassed new launches and this is a positive indicator for the market.

Delhi-NCR witnessed a maximum decrease in unsold stock at 37% year-on-year with housing units at 27,959, followed by Mumbai with 31% decrease currently standing at 48,399 units.

PE Analytics owns and operates PropEquity which is an online real estate data and analytics platform covering over 1.5 lakh projects by more than 45,000 developers across more than 44 cities.

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