Housing Sales and Supply See Decline in Top Nine Cities in Q4 2024: PropEquity Report
In a concerning trend for the real estate sector, the housing supply in the top nine cities is expected to drop by 33 per cent, according to a recent report by PropEquity. This decline is likely to have significant implications for the market.
Real EstateHousing SupplyPropequityTop Nine CitiesMarket TrendsReal Estate PuneDec 21, 2024
This significant drop in supply, as reported by PropEquity, a leading real estate analytics firm, is expected to impact the market dynamics and consumer confidence in these major urban areas.
PropEquity, a well-respected name in the real estate analytics industry, has been tracking the residential market trends across major cities in India for over a decade.
Their recent report highlights a concerning trend where the availability of new housing units is dwindling at an alarming rate.
This decline is attributed to a combination of factors, including regulatory challenges, cost overruns, and a slowdown in new project launches.
The top nine cities, which include Mumbai, Delhi, Bangalore, Kolkata, Chennai, Hyderabad, Pune, Ahmedabad, and Kochi, have traditionally been the hubs of economic activity and urbanization.
However, the decline in housing supply in these cities is expected to exacerbate the existing housing shortage and drive up property prices, making it harder for first-time buyers and younger families to enter the market.
According to the PropEquity report, Mumbai, the financial capital of India, is expected to see the steepest decline in housing supply, with a projected drop of 45 per cent.
This is followed by Delhi and Bangalore, which are anticipated to witness a decline of 40 per cent and 35 per cent, respectively.
The report also notes that cities like Pune and Kochi have shown a more modest decline of around 25 per cent, which is still significant.
The decline in supply is not the only issue facing the real estate market.
Housing sales have also taken a hit, with a projected decline of 20 per cent in the top nine cities.
This is a reflection of the overall economic slowdown and the increasing affordability gap in these urban centers.
The report suggests that the combination of high property prices and economic uncertainty is deterring potential buyers, leading to a slowdown in the market.
The real estate sector has been a key driver of economic growth in India, contributing significantly to employment and infrastructure development.
However, the current trend of declining supply and sales is a cause for concern.
It not only affects the real estate developers and investors but also has broader implications for the economy as a whole.
To address the issue, the report recommends several measures, including streamlining regulatory processes, providing incentives for developers to launch new projects, and improving the overall business environment.
These steps, if implemented effectively, could help to mitigate the supply gap and stimulate the market.
In conclusion, the PropEquity report paints a sobering picture of the real estate sector in the top nine cities of India.
The decline in housing supply and sales is a clear indication of the challenges facing the market.
However, with the right policy interventions and market strategies, there is hope that the sector can overcome these hurdles and return to a path of sustainable growth.
Frequently Asked Questions
What is the expected decline in housing supply in the top nine cities according to the PropEquity report?
The PropEquity report projects a 33 per cent decline in housing supply in the top nine cities in the fourth quarter of 2024.
Which cities are expected to see the steepest decline in housing supply?
Mumbai is expected to see the steepest decline in housing supply, with a projected drop of 45 per cent, followed by Delhi and Bangalore with declines of 40 per cent and 35 per cent, respectively.
What are the main factors contributing to the decline in housing supply?
The decline in housing supply is attributed to a combination of regulatory challenges, cost overruns, and a slowdown in new project launches.
How is the decline in housing supply expected to impact the market?
The decline in housing supply is expected to exacerbate the existing housing shortage and drive up property prices, making it harder for first-time buyers and younger families to enter the market.
What measures does the PropEquity report recommend to address the decline in housing supply?
The report recommends streamlining regulatory processes, providing incentives for developers to launch new projects, and improving the overall business environment.
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