Housing sales fell 11 per cent during July-September to 1.07 lakh units across seven major cities, attributed to lower launches and a 23 per cent annual growth in average prices, according to Anarock database.
Anarock on Thursday released data that showed an 11 per cent fall in sales of residential properties in July-September to 1,07,060 units from 1,20,290 units in the year-ago period.
Anarock Chairman Anuj Puri said, "All of the top cities recorded a decrease in house sales."
Market Trends and Influences
The top seven cities witnessed a drop of 19 per cent in new housing supply with 93,750 units launched in July-September 2024 against 1,16,220 units in the corresponding period in 2023. "Nevertheless, the fact that sales remained higher than launches indicates that the demand-supply equation remains robust," Puri said.
He pointed up the fact that the third quarter saw a slowdown in home sales due to rising costs and the monsoon season. "The 'shraad' season, as it usually does, suppressed demand because many Indians postponed acquiring a house during this period."
Overall, Puri said the housing market is stabilizing after creating a new peak in January-March 2024. Anarock noted that developers have several projects lined up during the festive quarter (October-December) when the market is expected to see an uptick in demand. "That said, sales growth in the upcoming quarters may not be as steep as seen in the last 1-2 years," he added.
New Supply Overview
In Q3 2024, key cities contributed 78 per cent of new housing supply. The Mumbai Metropolitan Region (MMR) saw approximately 29,615 units launched, reflecting an 18 per cent annual decline and a 33 per cent quarterly drop, with over 53 per cent in the INR 40 lakh to INR 2.5 Cr segment. Similarly, Bengaluru added around 15,915 units, reflecting a 1 per cent quarterly decrease but a 7 per cent yearly increase. Over 87 per cent of the new supply came from the mid- and upper-mid sectors (prices ranging from INR 40 lakh to INR 1.5 crore).
In Q3 2024, the National Capital Region (NCR) launched 14,130 units, representing a 53 per cent yearly rise, although a 17 per cent decrease from the previous quarter. Remarkably, the ultra-luxury market accounted for 64 per cent of the new supply (above INR 2.5 Cr). Meanwhile, Hyderabad saw approximately 13,890 units added, indicating a 44 per cent yearly decline but a 1 per cent quarterly increase, with a significant 97 per cent in premium, luxury, and ultra-luxury segments (priced above INR 80 lakh).
Pune contributed 12,450 units, representing a 49 per cent yearly fall and a 34 per cent quarterly decline. Chennai also recorded reductions. More than 74 per cent of its fresh inventory fell under the INR 40 lakh to INR 1.5 Cr range. Chennai, on the other hand, debuted 4,620 units, exhibiting an 11 per cent quarterly decrease but a 51 per cent yearly growth, with more than 80 per cent falling into the mid- and upper-mid segment.
Kolkata added 3,130 units, marking a 5 per cent annual decrease but a 46 per cent rise from the previous quarter. Approximately 56 per cent of this new supply fell in the sub-INR 80 lakh range.
Sales Performance by City
According to the data, the Mumbai Metropolitan Region (MMR) recorded the highest sales among the top seven cities in the July-September quarter at 36,190 units, a 6 per cent drop from 38,505 units in the year-ago period. Pune saw a 17 per cent decline in sales to 19,050 units from 22,885 units during the period under review.
Housing sales in Delhi-NCR fell 2 per cent to 15,570 units from 15,865 units. In Bengaluru, housing sales decreased 8 per cent to 15,025 units from 16,395 units. Hyderabad recorded sales of 12,735 units, a 22 per cent fall from 16,375 units in the third quarter of 2023.
Housing sales in Kolkata declined 25 per cent to 3,980 units from 5,320 units. In Chennai, housing sales fell 9 per cent to 4,510 units during July-September from 4,945 units in the year-ago period.
"Due to escalating input costs as well as significant sales growth, average residential property prices across the top seven cities collectively rose by 23 per cent annually - from Rs 6,800 per sq. ft. in Q3 2023 to Rs 8,390 per sq. ft. in Q3 2024," Anarock said. Among the top seven cities, Hyderabad saw the highest 32 per cent jump in average prices.
