Indian Housing Market Sees 11% Drop in Sales in Q3 2024 Amidst Festive Season
Real Estate, Demand-Supply Equation in Real Estate, Festive Quarter, Housing Inventory, housing market, housing sales, Hyderabad, Indian real estate
Housing MarketReal EstateDemandsupply EquationFestive QuarterHousing InventoryReal Estate NewsSep 26, 2024
In the nine major cities, including Mumbai, Delhi, Bengaluru, and Hyderabad, the total sales of housing units stood at 64,000 in Q3 2024, down from 72,000 in the same period last year. On the other hand, new property launches increased by 15% to 73,000 units during the same period.
The demand-supply equation in the real estate market continues to be skewed, with the supply of housing units exceeding the demand. The housing inventory in the nine major cities stands at around 480,000 units, with an average selling period of 30-40 months.
The festive quarter, which typically sees a surge in demand, failed to boost sales this year. Experts attribute this to the increased prices of housing units, high interest rates, and sluggish economic growth.
The cities that witnessed the maximum decline in sales were Mumbai and Delhi, with a drop of 15% and 12% respectively. Hyderabad, however, saw a marginal increase of 2% in sales.
The real estate market in India is facing a significant challenge due to the mismatch between demand and supply. The builders are struggling to clear their inventory, and the buyers are hesitant to purchase due to high prices and interest rates.
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In the current market scenario, the buyers have an upper hand, and they can negotiate better deals with the builders. The prices of housing units are expected to remain stable in the coming quarters, and the buyers can take advantage of this situation.
The government's initiatives to boost the real estate sector, such as the Pradhan Mantri Awas Yojana (PMAY) and the Real Estate (Regulation and Development) Act, 2016 (RERA), are expected to have a positive impact on the market in the long run.
However, the short-term outlook for the housing market remains gloomy, with sales expected to remain sluggish in the coming quarters.
Frequently Asked Questions
What is the current state of the Indian housing market?
The Indian housing market is currently facing a decline in sales, with a drop of 11% in Q3 2024.
What are the main reasons for the decline in housing sales?
The main reasons for the decline in housing sales are high prices, high interest rates, and sluggish economic growth.
Which cities witnessed the maximum decline in sales?
The cities that witnessed the maximum decline in sales were Mumbai and Delhi, with a drop of 15% and 12% respectively.
What is the current housing inventory in the nine major cities?
The housing inventory in the nine major cities stands at around 480,000 units, with an average selling period of 30-40 months.
What are the government's initiatives to boost the real estate sector?
The government's initiatives to boost the real estate sector include the Pradhan Mantri Awas Yojana (PMAY) and the Real Estate (Regulation and Development) Act, 2016 (RERA).
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