The real estate sector in India continues to show dynamic shifts in housing demand, with cities like Delhi and Navi Mumbai witnessing notable growth, while other major metropolitan areas face a temporary slowdown. According to recent data from PropEquity, housing sales across nine key cities saw mixed trends in the July-September 2024 quarter, with a predicted 18% drop in overall sales compared to the same period last year.
Delhi-NCR Leads the Way in Real Estate Growth
In the Delhi-NCR region, housing sales are expected to see a significant rise of 22%, reflecting the ongoing demand for homes in the capital and its surrounding areas. PropEquity’s report highlights that 10,263 units are expected to be sold during the July-September quarter, compared to 8,411 units last year.
Sanju Bhadana, Managing Director of 4S Developers, attributed this growth to the surge in infrastructure development in the region. Key projects like the Dwarka Expressway, Delhi-Mumbai Expressway, and Noida International Airport are playing pivotal roles in attracting both investors and homebuyers. The expansion of the metro network and high-speed rail services is further boosting the appeal of luxury homes in Delhi and its nearby areas.
Navi Mumbai Shows Steady Growth in Sales
Navi Mumbai also stands out as a city with positive growth in the real estate sector. Sales are projected to increase by 4%, with 7,737 units expected to be sold during the quarter. Despite a slight dip in the larger Mumbai area, Navi Mumbai remains a promising market due to its expanding infrastructure and connectivity.
Decline in Housing Sales Across Other Major Cities
While Delhi-NCR and Navi Mumbai experience a boost in real estate activity, other major cities are seeing a drop in sales. Hyderabad, one of India’s fastest-growing cities, is expected to see a sharp decline of 42%, with sales predicted to fall from 17,978 units last year to 13,355 units this quarter.
Similarly, Bengaluru is facing a 26% decline, as the market adjusts to new developments. Despite being a tech hub, the city’s housing market has seen a slowdown, with sales expected to fall to 13,355 units. Pune and Chennai are also experiencing a downturn, with expected drops of 19% and 18%, respectively.
Expert Insights on the Market Trends
Sameer Jasuja, CEO and Founder of PropEquity, remains optimistic about the future of the Indian real estate market. He explained that the drop in sales across some cities is part of a normal market correction and not indicative of a long-term issue. “The demand remains strong, and sales have outpaced new offerings this quarter. The slight decline is normal and does not reflect any major concerns,” Jasuja stated.
Sanju Bhadana of 4S Developers echoed similar sentiments, pointing out that Delhi’s market continues to thrive, thanks to infrastructure investments. “The increasing demand for luxury homes in Delhi NCR showcases the positive impact of infrastructure projects. We expect this trend to continue as the market remains buoyant.”
Hyderabad, Mumbai, and Kolkata See Slower Sales
In Hyderabad, the drop in sales is expected to be the most severe, with a 42% decline projected. The number of units sold is predicted to fall to 12,082, as compared to 20,796 in the same period last year. Meanwhile, Mumbai may see a 17% decrease in housing sales, down to 10,966 units. In Kolkata, a 23% dip is expected, with sales forecasted to fall to 3,590 units.
Pune’s Real Estate Market Slows Down
Pune, another major real estate market, is also expected to see a decline of 19% in housing sales during the July-September quarter. From 21,306 units last year, sales in the city are predicted to fall as developers navigate market fluctuations and buyer sentiment.
Despite these temporary dips, experts believe that the Indian real estate sector is poised for steady growth, with cities like Delhi-NCR and Navi Mumbai leading the charge. With new infrastructure projects coming up and continued demand for both luxury and affordable housing, the market remains resilient in the face of these changes.
