Top 8 housing markets see 5% annual sales dip in Sep quarter; demand up only in Delhi-NCR, says report

Housing sales declined 5% in the July-September quarter across the top eight cities due to a fall in new supply and sharp appreciation in prices, according to a report by PropTiger.

Real estate brokerage platform PropTiger, which is part of Australia's REA group that owns Housing, on Tuesday, released its report 'Real Insight' on India's residential market.

A total of 96,544 units were sold in July-September, down 5% from 1,01,221 units sold during the same period in 2023.

The number of new residential units launched in the top 8 markets fell 25% to 91,863 units from 1,23,080 units.

PropTiger pointed out that a sharp increase in home prices, averaging a nearly 20% increase across the top eight cities, impacted affordability.

As per the data, housing sales rose only in Delhi-NCR and declined in the other seven major cities. Delhi-NCR saw a 29% growth in sales to 10,098 units during July-September from 7,800 units in the year-ago period.

However, the sales declined 9% in Ahmedabad to 9,352 units from 10,305 units.

Bengaluru witnessed an 11% fall in sales to 11,160 units from 12,588 units.

Housing sales in Chennai dropped 8% to 3,560 units from 3,874 units.

Hyderabad registered a 19% decline in sales to 11,564 units from 14,191 units, while Kolkata saw a 22% dip to 2,796 units from 3,607 units.

Sales of residential properties in the Mumbai Metropolitan Region dipped 1% to 30,010 units from 30,299 units.

In Pune, the housing sales decreased 3% to 18,004 units during July-September this year from 18,557 units in the year-ago period.

Vikas Wadhawan, CFO of REA India and Business Head of PropTiger said, "the year-on-year decline in both sales and new launches reflects the market's response to rising prices."

He further added, "We are observing a healthy moderation in market activity, which is beneficial for end-users as it brings about sustainable growth. Over the last few quarters, prices have increased by 3% to as much as 50% in some prime localities of key markets, affecting immediate buying decisions."

However, Wadhawan expects buyers to gradually adjust to the new price realities.

"With the festive season kicking off with Navratri, renewed buyer interest and a spike in sales activity are anticipated. The market frenzy has slowed, creating a more stable environment for end-users."

Developers, particularly in Hyderabad and Pune, have also recalibrated their supply strategies to align with shifting demand patterns.

"The festive season is expected to bring fresh energy as developers introduce attractive offers, revitalising the market despite recent challenges," Wadhawan said.

Delhi-NCR includes Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad.

Mumbai Metropolitan Region (MMR) includes Mumbai, Navi Mumbai and Thane.