Residential Real Estate Sales Slow Down in Q2 2024, Industry Hopes for a Rebound
Residential real estate sales in India's top 7 cities declined marginally in Q2 2024 due to rising property prices and a high base record in Q1 2024.
Real EstateResidential SalesProperty PricesAnarockDelhi NcrMumbaiBengaluruPuneHyderabadChennaiKolkataReal EstateJun 27, 2024
The top 7 cities, including Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata, saw a total of approximately 1.20 lakh units sold in Q2 2024, against the all-time best of 1.30 lakh units in Q1 2024. Only NCR saw a 6% quarterly rise in sales, with approximately 16,550 units sold in Q2 2024 against 15,650 units in Q1 2024. On a yearly basis, NCR witnessed a 1% jump.\n\nANAROCK Research data reveals that housing sales witnessed a quarterly drop of 8% and stood at approximately 1,20,340 units in Q2 2024 across the top 7 cities, against approximately 1,30,170 units sold in Q1 2024. However, on a yearly basis, there has been a 5% rise in residential sales.
The two western cities, MMR and Pune, accounted for over 52% of the total sales in the top 7 cities, with over 62,685 units sold altogether in these cities in Q2 2024. NCR is the only city to see a quarterly rise (of 6%) in housing sales in the quarter against Q1 2024.\n\nNew launches across the top 7 cities continued to break previous records, with a 6% Q-o-Q rise – from approximately 1,10,870 units in Q1 2024 to approximately 1,17,170 units in Q2 2024. MMR and Pune saw the maximum new supply, accounting for 54% of the total new launches across the top 7 cities.\n\nAccording to Anuj Puri, Chairman – ANAROCK Group, 'The quarterly decline seen in housing sales is essentially because of the all-time high base considered in the previous quarter, when more than 1.30 lakh units were sold. Most importantly, this drop is also due to the significant hike in property prices over the last one year, which in turn has prompted many investors to take a breather.
Industry experts believe that the demand for homes has reached an all-time high in the past two years, particularly in the aftermath of COVID. This surge underscores a fundamental shift in people's perception of homeownership, where the value of having a place to call home has become more apparent than ever before. Residential real estate has not only served as a sanctuary for end-users but has also emerged as an attractive investment avenue.\n\nThe substantial returns offered by residential properties, especially luxury homes, have fueled an increasing trend of purchasing homes for investment purposes. Within NCR, Gurugram, in particular, has emerged as a preferred choice for luxury homebuyers, with a large presence of HNIs and UNHIs base and a significant rise in the number of affluent millennials in the region, who prefer to stay close to work and are willing to go the extra mile for their convenience and indulgent lifestyle.\n\nIt remains to be seen whether sales pick up in the later half of the current year or not.
Frequently Asked Questions
What is the current trend in residential real estate sales in India?
Residential real estate sales in India are showing signs of slowing down, with a marginal decline in Q2 2024 due to rising property prices and a high base record in Q1 2024.
Which city saw a quarterly rise in sales in Q2 2024?
NCR saw a 6% quarterly rise in sales in Q2 2024, with approximately 16,550 units sold against 15,650 units in Q1 2024.
What is the main reason for the decline in housing sales in Q2 2024?
The main reason for the decline in housing sales in Q2 2024 is the significant hike in property prices over the last one year, which has prompted many investors to take a breather.
Which cities accounted for over 52% of the total sales in the top 7 cities in Q2 2024?
The two western cities, MMR and Pune, accounted for over 52% of the total sales in the top 7 cities, with over 62,685 units sold altogether in these cities in Q2 2024.
What is the outlook for residential real estate sales in the second half of 2024?
It remains to be seen whether sales pick up in the later half of the current year or not, but industry experts are hopeful of a rebound.
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