Housing Sales Dip 8% Across Top 7 Cities in Q2 2024 Amid Rising Property Prices: Report

Housing sales witnessed a quarterly dip of 8 per cent across the top seven cities in the second quarter of 2024, according to the latest research by ANAROCK, a property consultancy firm. Due to increasing property prices and a high base record in the first quarter (Q1 2024), the bull run in residential sales across the top 7 cities went down marginally in Q2 2024, the report finds. Approximately 1,20,340 units were sold in Q2 as compared to approx. 1,30,170 units sold in Q1 of the current financial year. However, on a yearly basis, there has been a 5 per cent increase in residential sales.

Data shows that average residential prices saw a quarterly hike of 7 per cent and an annual increase of a significant 25 per cent across the top seven cities.

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“The quarterly decline seen in housing sales is because of the all-time high base considered in the previous quarter when more than 1.30 lakh units were sold. Most importantly, this drop is also due to the significant hike in property prices over the last year, which in turn has prompted many investors to take a breather,” says Anuj Puri, Chairman, ANAROCK Group.

The NCR region witnessed the highest quarterly increase of 10 per cent in the second quarter of 2024, while Hyderabad saw the highest yearly rise of 38 per cent in average residential prices. “However, if prices are kept in check henceforth, housing sales may not be majorly impacted in the upcoming quarters,” Suri remarks.

New Launches Across Top 7 Cities

The report finds that new launches continued to break previous records across the top 7 cities with a 6 per cent Q-o-Q increase. The number of units sold increased from approx 1,10,870 in the first quarter of 2024 to approx. 1,17,170 in Q2 2024.

Accounting for 54 per cent of the total new launches MMR (Mumbai Metropolitan Region) and Pune witnessed the maximum new supply across the top 7 cities. Individually, both cities saw 31 per cent and 1 per cent quarterly increases in their new supply, respectively.

NCR witnessed a 134 per cent Q-o-Q increase in new supply in the second quarter of 2024 against Q1 2024.

MMR, Pune, NCR, and Bengaluru collectively accounted for 82 per cent of the supply addition.

City-wise Data of New Launches:

MMR: Approx. 44,120 units were launched in the region in the second quarter of 2024. Additionally, over 64 per cent of new supply was added in the sub-Rs 80 lakh budget segment.

Pune: New supply of approx. 18,920 units were added in Q2 against approx. 18,770 units in the first quarter. On a yearly basis, the city recorded an 11 per cent drop in new supply. More than 73 per cent of the new supply in the second quarter was added in the mid and premium segments (units priced between Rs 40 lakh to Rs 1.5 Cr.)

Hyderabad: Around 13,750 units were added in Q2, showing a quarterly drop of 40 per cent. However, the data shows that the city witnessed a 31 per cent increase in new supply against the corresponding period in 2023. Like Pune, the city also saw maximum new supply in the mid and premium price segments at 69 per cent.

Bengaluru: Around 16,020 units were added in Q2, showing a 3 per cent quarterly decline. On a yearly basis, there was a 40 per cent increase. Around 83 per cent of the new supply was added in the premium and luxury segments (Rs 80 Lakh onwards) combined.

City-wise Data

NCR alone saw a quarterly growth of 6 per cent in housing across all 7 cities. Around 15,650 units were sold in Q1 this year while approx. 16,550 units were sold in Q2.

MMR saw a decline of 3 per cent. The maximum sales in this region stood at approx. 41,540 units in the second quarter against approx. 42,920 units in Q1 2024.

Pune and Bengaluru saw a decrease in housing sales at 8 per cent over Q1 2024 and in Q2 2024, respectively. Pune sold approx 21,145 units in Q2 while 16,360 units were sold in Bengaluru in the same quarter.

Hyderabad saw a drop of 23 per cent over Q1 and sold approx 15,085 units in Q2 2024.

Chennai sold approx. 5,020 units in the second quarter and saw a decline of 9 per cent against Q1 2024.

Kolkata’s housing sales dropped by 18 per cent in Q2 against Q1 2024 wherein approx. 4,640 units were sold in the second quarter this year.

The average residential property prices surge in the range of 4 to 10 per cent in the second quarter across the top 7 cities against Q1 2024. As for available inventory across the top 7 cities, a drop of a mere 1% has been seen quarterly with around 5.78 lakh units reported at the end of Q2 2024. The NCR region saw the highest yearly drop of 22 per cent - from around 1.11 lakh units by Q2 2023-end to approx. 86,900 units as of Q2 2024-end.