Housing Sales Fall 9% to 471,000 Units in 9 Major Cities in 2024
Housing sales across nine major cities have declined by 9 percent, reaching nearly 471,000 units in 2024. This drop is attributed to lower demand and a decrease in fresh supply.
Real EstateHousing MarketPropequity2024Sales DeclineReal Estate MumbaiJan 22, 2025
This decrease is primarily attributed to a combination of lower demand and a reduction in fresh supply, according to a recent report by PropEquity, a leading real estate analytics firm.
The slowdown in the housing market is a cause for concern for developers and investors alike.
Factors contributing to the drop include economic uncertainty, higher interest rates, and a shift in consumer preferences towards rental properties.
The nine cities in question are Delhi, Mumbai, Bangalore, Chennai, Kolkata, Pune, Hyderabad, Ahmedabad, and Jaipur, all of which have seen a notable decline in housing sales.
According to the report, Mumbai, which has traditionally been one of the strongest markets, experienced a particularly steep decline.
The city saw a 12 percent drop in housing sales, falling from 100,000 units in 2023 to 88,000 units in 2024.
Similarly, Bangalore, known for its thriving tech industry, saw a decline of 10 percent, dropping from 80,000 units to 72,000 units.
PropEquity, a respected name in the real estate sector, noted that the decline in fresh supply is a significant factor.
Developers have become more cautious in launching new projects due to the uncertain economic environment and stricter regulatory requirements.
This has led to a shortage of new housing units, exacerbating the decline in sales.
The report also highlights the impact of higher interest rates on the housing market.
The Reserve Bank of India (RBI) has increased interest rates to control inflation, making home loans more expensive.
This has deterred potential buyers, particularly first-time homebuyers who are more sensitive to changes in interest rates.
Consumer preferences have also shifted, with more people opting for rental properties over buying.
The rise of rental platforms and the convenience of renting have made it an attractive option for many, especially young professionals and families looking for short-term housing solutions.
Despite the challenges, the report suggests that the market may stabilize in the coming years.
Economic indicators suggest a gradual improvement, and the government has announced several initiatives to boost the real estate sector.
These include tax incentives for first-time homebuyers, relaxation of regulatory norms, and increased investment in infrastructure.
PropEquity's CEO, Ravi Kumar, stated, 'While the housing market has faced several headwinds in 2024, we are optimistic about the future.
The government's initiatives and economic recovery are expected to drive demand in the coming years, and we anticipate a gradual improvement in sales.'
For now, developers and investors will need to be patient and strategic.
Adapting to the changing market dynamics and focusing on customer needs will be key to success in the coming years.
The real estate sector remains a vital part of the Indian economy, and while the challenges are significant, the long-term prospects remain positive.
Frequently Asked Questions
What is the main reason for the decline in housing sales in 2024?
The main reasons for the decline in housing sales in 2024 are lower demand and a decrease in fresh supply, driven by economic uncertainty, higher interest rates, and a shift in consumer preferences towards rental properties.
Which cities saw the most significant decline in housing sales?
Mumbai and Bangalore saw the most significant decline in housing sales, with Mumbai experiencing a 12 percent drop and Bangalore a 10 percent decline.
How have higher interest rates affected the housing market?
Higher interest rates have made home loans more expensive, deterring potential buyers, particularly first-time homebuyers who are more sensitive to changes in interest rates.
What steps is the government taking to boost the real estate sector?
The government has announced several initiatives to boost the real estate sector, including tax incentives for first-time homebuyers, relaxation of regulatory norms, and increased investment in infrastructure.
What is PropEquity's outlook on the future of the housing market?
PropEquity is optimistic about the future of the housing market, anticipating a gradual improvement in sales driven by economic recovery and government initiatives.
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