India's Housing Market Sees a Slump in New Supply and Sales
The Delhi-NCR real estate market has emerged as the best performer in terms of launches and sales, while cities like Hyderabad and Pune may experience a decline.
Real EstateHousing MarketIndiaPropequityDelhi NcrBengaluruChennaiHyderabadKolkataMumbaiNavi MumbaiPuneThaneReal EstateJun 20, 2024
The report highlights that the Delhi-NCR real estate market has emerged as the best performer in terms of launches and sales. Cities like Hyderabad and Pune may experience a notable decline, with new launches in Hyderabad decreasing by 36% Year-on-Year while Pune's new launches may dip by 47%. However, Delhi-NCR may see a 95% y-o-y increase in new launches, rising from 5,708 units in Q2, 2023 to 11,118 units in Q2, 2024.
PropEquity released the housing sales data for April-June, 10 days before the end of the quarter. On a Quarter on Quarter (Q-o-Q) basis, the launches witnessed a seven percent decline with 97,331 units getting launched in Q2 2024 as compared to 1,04,391 units in Q1 2024. Quarterly sales were down 18% to 1,19,901 units in Q2 2024 compared to the previous quarter which stood at 1,46,1947 units.
PropEquity Managing Director and Chief Executive Officer Samir Jasuja said that while the January-March period was an extraordinary quarter with the highest absorption/ sales ever witnessed in India, the April-June quarter is usually the slowest quarter compared to other quarters with respect to supply and absorption/sales. Also, the reason for the supply coming down marginally was because Q2 2024 is an election quarter and some developers held back their launches during the time.
The report also highlights that sales and launches are strong in Delhi-NCR, with sales of residential properties likely to rise to 10,198 units during April-June this year from 9,635 units in the year-ago period. The Mumbai real estate market, on the other hand, is expected to report a six percent fall in terms of launches on both Q-o-Q and Y-o-Y basis followed by sales going down by 25% on Q-o-Q basis and 1% on Y-o-Y basis.
Frequently Asked Questions
Which city's real estate market has emerged as the best performer in terms of launches and sales?
Delhi-NCR
By how much is the new supply expected to drop across the top nine cities?
13%
What is the reason for the supply coming down marginally in Q2 2024?
The election quarter and some developers holding back their launches during the time
How much is the sales of residential properties likely to rise in Delhi-NCR during April-June this year?
10,198 units
Which cities may experience a notable decline in new launches?
Hyderabad and Pune
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