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Home sales are down 11%, property prices up by 23%

After a 2-year bull run, home sales are down 11%, property prices up by 23%

India’s real estate market witnessed an eleven per cent decline in housing sales during the third quarter of 2024, according to a report by ANAROCK Research. While the top seven cities (NCR, MMR, Bengaluru, Pune, Hyderabad, Kolkata, and Chennai) accounted for 80% of total sales, Mumbai Metropolitan Region (MMR) remained the top-performing market with 36,190 units sold, despite a 13% quarterly decline.
Bengaluru, Pune, Hyderabad, Kolkata, and Chennai also experienced declines in sales compared to the previous quarter and year. Available inventory across the top 7 cities decreased by 2% on a quarterly basis to approximately 5,64,415 units.

After a 2-year bull run, residential real estate activity across the top cities stabilized in Q3 2024 – typically a slow quarter due to the monsoon and perceived inauspiciousness. Latest ANAROCK data reveals that housing sales across the top 7 cities declined by 11% annually, clocking in at approx. 1,07,060 units in Q3 2024 against approx. 1,20,290 units in Q3 2023. However, sales continued to outstrip new supply in Q3 2024, reflecting continued health in the market.

” After a 2-year bull run, residential real estate activity across the top cities stabilized in Q3 2024 – typically a slow quarter due to the monsoon and perceived inauspiciousness. Latest data reveals that housing sales across the top 7 cities declined by 11% annually, clocking in at approx. 1,07,060 units in Q3 2024 against approx. 1,20,290 units in Q3 2023. However, sales continued to outstrip new supply in Q3 2024,” revealed the Anarock report.

 

 

“Housing sales in the third quarter tapered down amid high prices and the monsoon season,” says Puri. “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.”

Developers have several projects lined up during the festive quarter (Oct.-Dec.) during which the market is expected to see an uptick in demand.

“That said, growth in the upcoming quarters may not be as steep as seen in the last 1-2 years,” says Puri. “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.”

Key highlights:
  • 1.07+ lakh units sold across the top 7 cities in Q3 2024, against 1.20+ lakh units back in Q3 2023
  • MMR saw highest sales of approx. 36,190 units, followed by Pune with approx. 19,050 units; together, these cities accounted for 52% of total sales in Q3 2024
  • New supply also witnesses a 19% drop, falling below the 1 lakh mark for 1st time since Q1 2023
  • MMR tops new supply with approx. 29,615 units launched in Q3 2024, followed by Bengaluru with approx. 15,915 units
  • Share of new luxury homes supply (priced >Rs 1.5 Cr) highest at 33%; affordable housing supply share dips to its lowest at 13%
  • Existing inventory across the top 7 cities declines 8% annually – from 6.10+ lakh units in Q3 2023 to 5.64+ lakh units in Q3 2024
  • Avg. residential prices in top 7 cities saw double-digit growth of 23% in Q3 2024 against Q3 2023: Hyderabad saw highest 32% annual growth; Bengaluru & NCR see 29% rise each

overview

  • Chennai added approx. 4,620 units in Q3 2024, seeing an 11% quarterly decline but a 51% annual jump. Over 80% of the new supply was added in the mid and upper-mid-segment (Rs 40 lakh – Rs 1.5 cr)

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