India’s real estate market saw a significant drop in housing sales during July-September 2024, with a decline of 11% across the top seven cities. This decline in residential sales has been attributed to the increase in property prices and a lower number of new launches.
According to a report by Anarock, one of the leading real estate consultancies, home sales in these major cities reduced from 1,20,290 units in the same quarter last year to 1,07,060 units this year. The rise in property prices, averaging 23% on an annual basis, has made it more difficult for buyers to invest in new homes, resulting in fewer transactions.
Fewer New Launches Impacting the Market
The reduction in housing sales can also be linked to a 19% decline in new launches. From July to September 2024, only 93,750 new housing units were launched in the top seven cities, compared to 1,16,220 units in the same period of 2023.
Anuj Puri, Chairman of Anarock, explained, “Although sales have decreased, the demand for homes remains stronger than the supply. The monsoon season, coupled with the ‘Shraadh’ period, traditionally slows down home buying, as many Indians avoid making purchases during this time.”
City-Wise Breakdown: Where Did Sales Decline the Most?
Among the top cities, the Mumbai Metropolitan Region (MMR) saw the highest number of sales with 36,190 units sold, but even there, a 6% decline was observed. Pune witnessed a 17% drop, with sales falling to 19,050 units from last year’s 22,885 units.
Other cities such as Bengaluru and Hyderabad also saw significant reductions. Bengaluru reported an 8% decline, while Hyderabad faced the steepest drop of 22%, with only 12,735 units sold compared to 16,375 units in 2023. In Delhi-NCR, sales slightly dropped by 2%.
Kolkata and Chennai See Sharp Declines
Kolkata saw one of the sharpest declines with a 25% reduction in sales, dropping from 5,320 units to 3,980 units. Meanwhile, Chennai experienced a 9% drop, selling 4,510 units compared to 4,945 units in the same period last year.
Rising Property Prices Adding to Buyer Hesitation
Anarock’s report also revealed that rising raw material costs and a strong demand for homes led to a significant increase in residential property prices. On average, property prices across these seven cities rose by 23%, from Rs 6,800 per square foot in Q3 2023 to Rs 8,390 per square foot in Q3 2024. Hyderabad experienced the sharpest price increase, with average property rates surging by 32%.
