Indian Real Estate Market Sees 11% Drop in New Launches, 18% Decline in Sales in Top-9 Cities
New housing launches and sales in top-9 cities in India saw a decline of 11% and 18% respectively in the third quarter of 2024. Hyderabad and Navi Mumbai witnessed a decline in supply and absorption of apartments.
Indian Real Estate MarketNew LaunchesSalesTop9 CitiesPropequityReal Estate MumbaiSep 20, 2024
PropEquity tracks housing supply and absorption data in NCR, Mumbai, Navi Mumbai, Thane, Pune, Bengaluru, Hyderabad, Chennai, and Kolkata. Samir Jasuja, CEO & founder of PropEquity, said, “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 supply and absorption of apartments in these cities. Hyderabad witnessed a historical high of 94,629 units of supply in 2023, therefore, the reduction in new launches in 2024 is quite logical.
On a year-over-year 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.
The data further pointed out that, on a year-over-year 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%).
Sanju Bhadana, managing director of 4S Developers, said, “In the past couple of years, the NCR market has seen tremendous growth in infrastructure development. The result of which is evident from the rising investment from both private equity players and homebuyers.”
Shiwang Suraj, founder and director of Gurugram-based property consulting firm InfraMantra, said, “The real estate market has traditionally been slow in the third quarter with developers holding up their launches for the festive quarter. However, NCR market has defied this trend.”
Frequently Asked Questions
What was the decline in new launches in the Indian real estate market in Q3 2024?
11%
What was the decline in sales in the Indian real estate market in Q3 2024?
18%
Which cities witnessed a decline in supply and absorption of apartments?
Hyderabad and Navi Mumbai
Which cities saw a rise in new supply in Q3 2024?
NCR, Mumbai, and Thane
What is the outlook for the real estate market in NCR?
The market is expected to continue performing well and maintain the sales momentum seen over the past few years.
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