A total of 113,768 housing units were sold in Q2 of Calendar Year 2024, against 1,20,642 units in the previous quarter. The quarterly decline in sales was seen across cities, barring Bengaluru and Delhi-NCR.
Housing sales in India’s eight prime residential markets fell 6% during the April-June period of 2024 (Q2CY2024), even as new supply tapered, a quarterly analysis by PropTiger.com shows.
In its quarterly report titled ‘Real Insight Residential – April-June 2024’, the Gurugram-headquartered firm said a total of 113,768 units were sold in Q2 of Calendar Year (CY) 2024, against 1,20,642 units in the previous quarter (Q1CY2024). The quarterly decline in sales was seen across cities, barring Bengaluru (30% increase) and Delhi-NCR (10% increase).
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Applying a wait-and-watch strategy ahead of the poll results, homebuyers deferred plans to invest in real estate during the quarter, which saw the world’s largest democracy conducting national elections, the firm said.
“Demand for homes moderated during the April-June period on account of the general elections even though consumer sentiment continues to remain extremely positive about real estate investments on the back of strong fundamentals. Amid expectations of a pro-investment Union Budget after the formation of a new government at the Centre, we have reason to believe that sales numbers would strengthen in the coming quarters, especially during the festive months,” said Vikas Wadhawan, Group CFO, REA India, and Business Head, PropTiger.com.
“Awaiting policy changes in the upcoming Union Budget that would pave the way for turning India into the world’s third-largest economy by 2027-28, the developer community, too, exercised caution, as evidenced by a decline in new launches in half of the cities sampled in our analysis,” Wadhawan added.
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Bengaluru defying trends:
Soaring property values in India’s IT capital, which nudged homebuyers to finalise purchase plans, helped Bengaluru defy the overall trend, with leading developers unveiling plans to launch new projects in the city, the report said. Similarly, easy availability of ready-to-move-in homes was cited as a key reason for an uptick in Delhi-NCR sales numbers.
An annual comparison of sales numbers in the June quarter, however, showed a 42% increase over the corresponding quarter in 2023 wherein 80,245 homes were sold.
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New supply down 1% QoQ; Hyderabad, Kolkata see sharpest fall
New supply fell marginally by 1% to 101,677 units during the April-June quarter — from 103,020 in the January-March period — the REA India group company said in its statement. The sharpest decline in supply was registered in Hyderabad (58%), followed by Kolkata (49%).
Moreover, only half the cities chosen in the analysis showed a fall in new launches while the remaining showed an increase. From 1,13,774 units in Q2 2023, new launches dipped 11% year-on-year in Q2 2024.
The primary reason for the sharp downward trend seen in new launches in Hyderabad and Kolkata has been a moderation in sales. On the other hand, new supply numbers for Ahmedabad doubled QoQ due to a spike in average property values.
MMR the biggest contributor to both supply and sales
Claiming a whopping 40% share, MMR remained the biggest contributor to new supply in the June quarter, followed by Pune (22% share) and Bengaluru (12% share). Interestingly, the three cities were also the largest contributors to the quarterly sales in the same order, with MMR claiming a 34% share, followed by Pune’s 19% and Bengaluru’s 12% contribution.
The top localities in terms of sales were Thane West, Panvel, Dombivali, Vasai and Chembur, all located in MMR. The top localities in terms of launches were Thane West, Panvel, Vasai, Dombivali, Neral (all in MMR) and Sholinganallur (Chennai).
