Housing Sales Expected to Plummet 23% in Top 9 Cities During January-March: PropEquity
According to real estate data analytics firm PropEquity, housing sales in the top nine cities are projected to decline by 23% in the January-March quarter, totaling 1.06 lakh units.
Real EstateHousing SalesPropequityProperty MarketTop CitiesReal Estate PuneMar 23, 2025
This projection comes after a period of relative stability in the real estate market, which had shown signs of recovery in the previous quarters. The decline is attributed to a combination of factors, including economic uncertainties, rising interest rates, and a slowdown in demand for new housing units.
Among the top nine cities, Pune has been a standout performer, recording over 19,000 property registrations and generating Rs 712 crore in stamp duty revenue. However, even Pune is expected to see a slight dip in sales, reflecting the broader trend across the country.
The report also highlights the impact of rising interest rates on homebuyers. With banks and financial institutions increasing their lending rates, the cost of borrowing has become more expensive, leading to a reduction in the number of potential buyers. This, in turn, has put pressure on developers to offer more attractive deals and incentives to attract customers.
Moreover, the economic slowdown and job market uncertainties have further dampened the confidence of homebuyers. Many potential buyers are now adopting a wait-and-see approach, preferring to hold off on major purchases until the market stabilizes.
Despite the forecasted decline, industry experts remain cautiously optimistic about the long-term prospects of the real estate market. They believe that the government's continued focus on infrastructure development and the implementation of policy measures to boost the sector will eventually lead to a resurgence in housing sales.
In addition, the report suggests that the affordable housing segment may see less of a decline compared to the luxury and mid-segment markets. This is due to the government's push for affordable housing projects and the increasing demand for such units, especially in urban areas.
The top nine cities analyzed in the report include Mumbai, Delhi-NCR, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, and Jaipur. These cities have been chosen based on their significant contribution to the real estate market and their historical data trends.
Industry analysts also point out that the year 2022 saw a slight recovery in the real estate sector, with a 10% increase in housing sales compared to the previous year. However, the momentum seems to have slowed down in the current quarter, leading to the projected decline.
For homebuyers, the current market conditions present both challenges and opportunities. While the higher interest rates and economic uncertainties may make it more difficult to secure a loan, the reduced demand could lead to more competitive pricing and better negotiation leverage for buyers.
In conclusion, the PropEquity report serves as a valuable resource for stakeholders in the real estate market, providing insights into the current trends and future projections. It is expected that the market will continue to evolve, and developers and buyers alike will need to adapt to the changing conditions to succeed.
PropEquity is a leading real estate data analytics firm that provides comprehensive market insights and intelligence to a wide range of clients, including developers, investors, and policymakers. The firm's reports are widely respected in the industry for their accuracy and depth of analysis.
Frequently Asked Questions
What is the projected decline in housing sales for the top 9 cities in January-March?
Housing sales in the top nine cities are projected to decline by 23%, with a total of 1.06 lakh units expected to be sold in the January-March quarter.
Which factors are contributing to the decline in housing sales?
The decline in housing sales is attributed to a combination of factors, including economic uncertainties, rising interest rates, and a slowdown in demand for new housing units.
How has Pune performed in property registrations?
Pune has recorded over 19,000 property registrations and generated Rs 712 crore in stamp duty revenue, despite the overall decline in sales.
What is the impact of rising interest rates on homebuyers?
Rising interest rates have increased the cost of borrowing, leading to a reduction in the number of potential buyers and putting pressure on developers to offer more attractive deals and incentives.
Which segment of the housing market is expected to see less of a decline?
The affordable housing segment is expected to see less of a decline compared to the luxury and mid-segment markets, due to the government's push for affordable housing projects and the increasing demand for such units.
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