India's Real Estate Market: Expecting a 13% Drop in New Housing Supply and 2% Decline in Sales
The Indian real estate market is expected to experience a decline in new housing supply and sales in the April-June period compared to the same period last year.
Real EstateHousing SupplySalesPropequityDelhi NcrBengaluruChennaiHyderabadKolkataMumbaiNavi MumbaiPuneThaneReal Estate MumbaiJun 20, 2024
The Delhi-NCR real estate market has emerged as the best performer in terms of launches and sales, with a 95% year-on-year increase in new launches and a 10% rise in sales. However, cities like Hyderabad and Pune may experience a notable decline, with new launches in Hyderabad decreasing by 36% year-on-year and Pune's new launches may dip by 47%.
The report further states that the Mumbai real estate market is expected to report a six percent fall in terms of launches on both quarter-on-quarter and year-on-year basis, followed by sales going down by 25% on quarter-on-quarter basis and 1% on year-on-year basis. Housing sales in Mumbai are estimated to fall marginally to 13,032 units from 13,219 units.
PropEquity Managing Director and Chief Executive Officer Samir Jasuja attributed the decline in supply to the election quarter, which led some developers to hold back their launches during the time. Despite this, Jasuja emphasized that the 20% higher sales as compared to new supply indicates an upswing and good health in residential real estate, which continues to be robust post-Covid-19.
The report also highlights that sales and launches are strong in Delhi-NCR, with the city likely to see an increase in new launches and sales on quarter-on-quarter and year-on-year basis. In contrast, Mumbai, Pune, and Hyderabad are expected to experience a decline in sales and launches.
In Bengaluru, housing sales are likely to rise to 15,127 units from 15,088 units, with the city seeing an increase of 21% in year-on-year launches but an 8% dip in quarter-on-quarter launches. Sales in Chennai are likely to fall to 4,841 units from 4,950 units, while sales in Kolkata are expected to rise to 5,130 units from 4,025 units.
Overall, the report suggests that while the Indian real estate market may experience a decline in new housing supply and sales in the short term, the long-term prospects remain positive, driven by the country's growing demand for housing and the government's initiatives to support the sector.
Frequently Asked Questions
What is the expected decline in new housing supply in the top nine cities in India?
13% drop in new housing supply
What is the expected decline in sales in the top nine cities in India?
2% decline in sales
Which city is expected to experience the highest growth in new launches?
Delhi-NCR, with a 95% year-on-year increase in new launches
Which cities are expected to experience a decline in sales and launches?
Mumbai, Pune, and Hyderabad
What is the reason behind the decline in supply, according to PropEquity Managing Director and Chief Executive Officer Samir Jasuja?
Election quarter, which led some developers to hold back their launches during the time
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