Indian Real Estate Market Sees Stabilization in Q3 2024
Residential housing sales dip 11% across top 7 cities, while office demand soars 31% in Q3 2024
Indian Real Estate MarketResidential Housing SalesOffice DemandAnarockColliersReal EstateSep 26, 2024
The July-September period, typically considered a slow quarter due to monsoon and perceived inauspiciousness, saw new supply dipping 19% annually at 93,750 against 1,16,220 units in the year-ago period. Quarterly, there was a 20% drop as around 1,17,170 units were launched in Q2.
However, sales continued to outstrip new supply in Q3 2024, reflecting continued health in the market. NCR, MMR, Bengaluru, and Pune accounted for 80% of the sales, with MMR (Mumbai Metropolitan Region) recording the highest 36,190 unit sales, a 6% yearly drop.
Among the top 7 cities, MMR recorded the highest sales of approx. 36,190 units, followed by Pune with approx. 19,050 units. Cumulatively, the two western cities accounted for 52% of the total sales across the top 7 cities. All the top cities individually recorded a dip in housing sales.
In terms of prices, escalating input costs as well as significant sales growth pushed the average residential property rates collectively by 23% annually -- from ₹6,800 per sq. ft. in Q3 2023 to ₹8,390 per sq. ft. in Q3 2024. Hyderabad saw the highest 32% jump in average prices.
Segment-wise, houses with less than ₹1.5 crore price tag were in the maximum new supply and recorded a 33% increase in Q3, followed by the premium (₹80 lakh-₹1.5 crore) at 30% and the mid-segment (₹40– 80 lakh) at 23%. The affordable segment's share fell further to just 13% – the lowest in a quarter.
Amid high hopes for the upcoming festival season, developers have lined up several projects, and stakeholders expect an uptick in demand, but growth in the upcoming quarters may not be as steep as seen in the last 1-2 years.
On the other hand, the office demand soared, recording a 31% YoY growth. The latest data put out by Colliers shows Q3 2024 saw space take-up to the tune of 17.3 million sq ft, with Bengaluru and Hyderabad accounting for over half of the leasing activity.
Bengaluru registered its highest-ever leasing in any quarter at 6.3 million sq ft, continuing its dominance in the office market, followed by Hyderabad and Pune at 2.9 mn. Sq. ft. and 2.6 mn. sq. ft.
In new supply, the total area of 14.4 million sq. ft. saw completions in Q3 2024, registering a 33% increase YoY, with Bengaluru and Hyderabad seeing 64% of the quarter’s new supply.
The technology sector drove around one-fourth of the overall office space demand during Q3, followed by BFSI occupiers and Flex space operators.
About ANAROCK
ANAROCK is a leading real estate consultancy firm in India, providing comprehensive services to its clients, including residential and commercial property sales, leasing, and investment advisory.
About Colliers
Colliers is a global real estate services and investment management company, operating in 67 countries, providing expert advice to clients on all aspects of property, from strategic and operational real estate issues to transactional services.
Frequently Asked Questions
What was the annual decline in residential housing sales in Q3 2024?
11%
Which city recorded the highest sales in Q3 2024?
MMR (Mumbai Metropolitan Region)
What was the average annual increase in residential property rates in Q3 2024?
23%
Which sector drove the most office space demand in Q3 2024?
Technology sector
What was the annual growth in office demand in Q3 2024?
31%
Related News Articles
Experience Luxury and Adventure: Runwal Hosts 2nd Edition of Audi Quattro Drive
Runwal, a leading real estate developer in Mumbai, is gearing up to host the second edition of the Audi Quattro Drive at their 25 Hour Life property in Thane.
Borivali's Luxury Real Estate Boom: Abhishek Bachchan's INR 15.42 Crore Investment
Bollywood star Abhishek Bachchan's recent investment in six luxury apartments at Oberoi Sky City, Borivali, underscores the area's growing real estate appeal, with a total area of 4,894 sq. ft valued at INR 31,498 per sq. ft.
Understanding Indexation in Long-Term Capital Gains Tax Calculations
The government's decision to withdraw the indexation benefit from long-term capital gains tax computations has sparked concerns among investors and taxpayers. Here's what it means and how it will affect you.
Pune Metro Expansion: Key to Unlocking Real Estate Growth
As Pune Metro expands, its impact on real estate is becoming increasingly evident. Developers are eyeing new areas for housing projects, transforming the city's landscape.
Bengaluru Dominates with 28% of Flex Office Space Deals in India
The Indian commercial real estate market has seen a significant increase in flex office space deals, with a total of 912 transactions recorded across eight major cities from 2018 to the third quarter of 2024. Bengaluru leads the pack, accounting for 28% o
Real Estate Continues to主导印度投资首选资产类别: 报告
印度的经济增长正在推动房地产行业的快速扩张，预计住宅市场到2029年将达到1.04万亿美元……