The real estate trends in India’s top 9 cities witnessed a significant shift in the third quarter (Q3) of 2024, according to a report by PropEquity, an online real estate data and analytics platform. Where the Delhi National Capital Region (Delhi-NCR) saw a whopping 221 per cent rise in new housing supply, overall new launches and sales across the top 9 cities witnessed a decline of 11 per cent and 18 per cent respectively compared to the same period in 2023.
New Launches And Sales Decline
PropEquity’s data shows that new housing launches in Q3 2024 (July-September) across the top nine cities like Mumbai, Bangalore, Pune, and Hyderabad fell to 93,693 units. Similarly, sales dropped to 1,04,393 units, down from 1,26, 848 units in the same quarter last year.
Despite this decline, the demand in the real estate market remains high. Says Samir Jasuja, CEO & Founder, PropEquity, “The absorption/sales is higher than the new launches and such marginal drops in this quarter is a historic trend and not symptomatic of any adverse situation.”
Delhi NCR Leads In New Supply
A quantum surge has been seen in the NCR region wherein in new launches increased by a staggering 221 per cent year-on-year from 4,147 units in the third quarter. This rise sharply contrasts with other cities, many of which saw a notable decline in the new supply.
For instance, Bengaluru, Kolkata and Hyderabad saw a significant drop in new housing launches during the Q3 period:
Bengaluru: See 19 per cent y-o-y drop; supply falls to 11,639 units from 14,430 units a year earlier
Hyderabad: 54 per cent decline in new launches
Kolkata: New Housing supply shrinks by 48 per cent
Sales Slow Down Across Top Cities
Sales have also witnessed a remarkable downward trend across major cities. Hyderabad took the hardest hit at 42 per cent followed by Bengaluru at 26 per cent and Kolkata at 23 per cent. Pune and Mumbai saw a steep decline of 19 and 17 per cent, respectively, while Thane reported a 10 per cent fall in sales.
However, the NCR and Navi Mumbai emerged as outliers recording Y-O-Y sales growth. NCR’s total absorption rose by 22 per cent from 8,411 units in Q3 2023 to 10.263 units in the same quarter this year. Navi Mumbai on the other hand saw a modest surge of 4 per cent increase in sales.
Are Housing Preferences Shifting?
There seems to be a visible shift in the housing preferences of the buyers. The report highlights a notable trend in Hyderabad and Navi Mumbai where most new real estate launches are in plotted developments rather than apartments.
“In Hyderabad and Navi Mumbai, the majority of new real estate launches are in plots rather than apartments, indicating a decline in supply and absorption of apartments in these cities,” says Jasuja.
Hyderabad saw a historic high of 94,629 units of supply in 2023, and the reduced new launches in 2024 were seen as a natural correction.
City-wise Breakdown Of New Launches
The data indicates that some cities have witnessed a sharper correction as compared to others. The chart below depicts the same:
City-wise Breakdown Of Sales
Sales across cities showed a downward spiral, with only NCR and Navi Mumbai bucking this trend:
