In the April-June quarter of 2024, housing sales in major Indian cities experienced a significant decline, according to a report by PropEquity, a real estate data analytics firm. The overall sales fell by 18% compared to the previous quarter. The cities that faced the most significant drops were Hyderabad and Mumbai.
Detailed Sales Analysis
Quarterly Comparison
The data shows that 1,19,901 housing units were sold across nine major cities in Q2 2024, a substantial decrease from the 1,46,147 units sold in Q1 2024. This represents an 18% decline quarter-on-quarter (QoQ). The nine cities included in this analysis are Mumbai, Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Pune, Navi Mumbai, and Thane.
Yearly Comparison
When comparing year-on-year (YoY) data, the decline in housing sales was more modest. Q2 2024 saw a 2% dip compared to the same period in 2023, with 1,19,901 units sold in 2024 versus 1,21,856 units in 2023.
City-wise Performance
Hyderabad
Hyderabad experienced the most significant decline, with a 36% drop in housing sales QoQ. The city sold 15,016 units in Q2 2024, compared to 23,595 units in Q1 2024.
Mumbai
Mumbai saw a 25% decline, with 13,032 units sold in Q2 2024 versus 17,307 units in the previous quarter.
Bengaluru and Kolkata
Bengaluru recorded a 14% decrease in sales, with 15,127 units sold in Q2 2024 compared to 17,547 units in Q1 2024. Kolkata saw a 16% decline in absorption of housing units QoQ.
Delhi NCR
Delhi NCR was an exception, witnessing growth in both sales and new supply. The region saw a 7% increase in sales, with 10,198 units sold in Q2 2024 compared to 9,510 units in Q1 2024. New supply also grew by 2% in this region.
New Housing Supply
New housing supply across major cities also declined by 7% QoQ, with 97,331 units launched in Q2 2024 compared to 1,04,391 units in Q1 2024. On a YoY basis, the decline was 12.8%, with 1,11,657 units launched in Q2 2023.
Factors Influencing the Market
Samir Jasuja, CEO and MD of PropEquity, attributed the decline to the election quarter, during which developers held back on new launches. Q2 is traditionally a slower quarter for both supply and sales. The significant drop in sales is also a consequence of the high sales witnessed in Q1 2024, which marked a historical peak.
Outlook for Future Quarters
Despite the current downturn, the demand for residential real estate in Tier-1 cities remains positive. Sales have been higher by 23% compared to new supply, indicating strong market demand. Cities like Delhi NCR, Chennai, and Navi Mumbai are expected to see continued growth in new housing supply in the upcoming quarters.
