Indian Housing Market Sees 11% Decline in New Launches, Sales Down 18% in Top 9 Cities
PropEquity's data reveals a slowdown in the Indian housing market, with new launches and sales declining in top 9 cities. NCR is the only region to experience growth in both new property launches and sales.
Indian Housing MarketPropequityReal EstateNew LaunchesSalesReal Estate NewsSep 22, 2024
PropEquity tracks housing supply and absorption data in NCR, Mumbai, Navi Mumbai, Thane, Pune, Bengaluru, Hyderabad, Chennai, and Kolkata. The data reveals that new launches in the July-September quarter of CY 2024 fell to 93,693 units from 1,05,655 units in the same period last year, while sales fell to 1,04,393 units in Q3 CY2024 from 1,26,848 units in the same period last year.
On a year-over-year (YoY) basis, only NCR, Mumbai, and Thane saw a rise in new supply at 221%, 18%, and 11% respectively in this quarter compared to Q3 2023. Hyderabad (54%), Kolkata (48%), Chennai (23%), Bengaluru (19%), Navi Mumbai (19%), and Pune (12%) witnessed a significant drop compared to Q3 2023.
However, the drop is not steep when compared to the previous quarter, i.e., Q2 2024. The data further pointed out that, on YoY basis, the total absorption rose only in Delhi NCR (22%) and Navi Mumbai (4%) while falling in other seven cities with Hyderabad recording the highest fall at 42%, followed by Bengaluru (26%), Kolkata (23%), Pune (19%), Chennai (18%), Mumbai (17%), and Thane (10%).
According to Samir Jasuja, Founder & CEO, PropEquity, “The demand for real estate continues to be robust as even in this quarter the absorption/sales is higher than the new launches and such marginal drops in this quarter is a historic trend and not symptomatic of any adverse situation.”
“In Hyderabad and Navi Mumbai, the majority of new real estate launches are in plots rather than apartments, indicating a decline in the supply and absorption of apartments in these cities. It is also important to note that Hyderabad witnessed a historical high of 94,629 units of supply in 2023, therefore reduction in new launches in 2024 is quite logical,” Jasuja added.
About PropEquity
PropEquity is a leading real estate data analytics firm that tracks housing supply and absorption data in major Indian cities. The company provides valuable insights into the Indian real estate market, helping stakeholders make informed decisions.
Frequently Asked Questions
What is the current state of the Indian housing market?
The Indian housing market has witnessed a slowdown in the third quarter of Calendar Year 2024, with new launches and sales declining by 11% and 18% respectively.
Which cities saw a rise in new supply in Q3 2024?
Only NCR, Mumbai, and Thane saw a rise in new supply at 221%, 18%, and 11% respectively in this quarter compared to Q3 2023.
What is the reason behind the decline in new launches in Hyderabad and Navi Mumbai?
The majority of new real estate launches in Hyderabad and Navi Mumbai are in plots rather than apartments, indicating a decline in the supply and absorption of apartments in these cities.
Is the decline in new launches and sales a cause for concern?
According to Samir Jasuja, Founder & CEO, PropEquity, the marginal drops in this quarter are a historic trend and not symptomatic of any adverse situation.
What is PropEquity and what does it do?
PropEquity is a leading real estate data analytics firm that tracks housing supply and absorption data in major Indian cities, providing valuable insights into the Indian real estate market.
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