Housing Sales Expected to Dip by 21% in Top 9 Cities During December Quarter, Demand Soars in NCR
Real estate data analytics firm PropEquity has released a report indicating a significant decline in housing sales in the top 9 cities for the December quarter. However, the National Capital Region (NCR) has seen a 25% increase in demand, bucking the tren
Real EstateNcrHousing SalesPropequityDemandReal Estate MumbaiDec 21, 2024
This decline is attributed to a combination of economic uncertainties, high interest rates, and a slowdown in the job market.
However, the National Capital Region (NCR), which includes Delhi, Gurugram, and Noida, has shown resilience with a 25% increase in demand.
The report highlights that the slowdown in housing sales is particularly pronounced in major metropolitan cities such as Mumbai, Bengaluru, and Chennai.
These cities have been hit hard by a combination of rising property prices and a lack of affordable housing options.
PropEquity's analysis suggests that the decline in sales is also a result of a lack of new launches in these markets, which has further dampened buyer interest.
On the other hand, the NCR has been a bright spot in the otherwise gloomy real estate landscape.
The region has seen a surge in demand, driven by its strategic location, robust infrastructure, and a growing population.
The availability of relatively affordable housing options has also contributed to the increased interest from homebuyers.
Gurugram, in particular, has emerged as a new ultra-luxury real estate hub, overtaking Mumbai in terms of high-end property sales.
PropEquity's CEO, Ravi Jain, attributes the strong performance of the NCR to its strong fundamentals.
'The NCR has always been a preferred location for homebuyers due to its well-connected infrastructure, job opportunities, and quality of life.
The recent surge in demand is a testament to the region's resilience and its ability to attract both first-time buyers and investors,' he said.
The report also indicates that the demand for affordable housing is on the rise, with a growing number of homebuyers looking for properties priced between INR 30 lakhs and INR 70 lakhs.
This is a positive sign for the real estate market, as it indicates that developers are beginning to focus on this segment, which has been underserved for a long time.
However, the report warns that the current economic challenges, including high interest rates and inflation, could dampen the momentum in the coming quarters.
PropEquity advises developers to focus on creating more affordable and sustainable housing options to sustain the growth in demand.
The NCR's strong performance is not just limited to the housing sector.
The region has also seen significant investments in commercial and retail real estate, driven by the growth of the IT and services sectors.
This has created a more balanced and diversified real estate market, which is better equipped to weather economic downturns.
In conclusion, while the overall real estate market in India is facing headwinds, the NCR stands out as a region with strong fundamentals and a resilient demand.
The focus on affordable housing and the region's strategic advantages are key factors that are driving this positive trend.
Information
PropEquity is a leading real estate data analytics firm that provides comprehensive insights into the Indian real estate market.
The company specializes in delivering data-driven solutions to developers, investors, and policymakers, helping them make informed decisions.
PropEquity's reports and analyses are widely respected in the industry for their accuracy and depth.
Frequently Asked Questions
What is the expected decline in housing sales in the top 9 cities for the December quarter?
The expected decline in housing sales in the top 9 cities for the December quarter is 21%, according to a report by PropEquity.
Which region has seen a significant increase in demand for housing?
The National Capital Region (NCR), including Delhi, Gurugram, and Noida, has seen a 25% increase in demand for housing.
What are the main factors contributing to the decline in housing sales in major cities like Mumbai and Bengaluru?
The main factors contributing to the decline in housing sales in major cities like Mumbai and Bengaluru include high property prices, a lack of affordable housing options, and a lack of new launches in these markets.
Why has Gurugram emerged as a new ultra-luxury real estate hub?
Gurugram has emerged as a new ultra-luxury real estate hub due to its strategic location, robust infrastructure, and a growing population, which has attracted both first-time buyers and investors.
What advice does PropEquity give to developers to sustain the growth in demand?
PropEquity advises developers to focus on creating more affordable and sustainable housing options to sustain the growth in demand, especially in the segment priced between INR 30 lakhs and INR 70 lakhs.
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