Growing at a fast clip for the past three and half years, the country’s housing market has begun to show signs of fatigue among homebuyers. After steady growth in home sales in India’s top seven markets for over three years, sales of new homes declined for the first time in April-June quarter.
Latest data from Anarock Property Research shows, sales in June quarter (Q2) fell by 8% sequentially. In Q2, 2024, some 120,340 housing units were sold, which was 8% lower than the 130,170 unit sales in January-March quarter (Q1). Among the key markets, Hyderabad reported the steepest decline – down 23% quarter-on-quarter. Followed by Kolkata (-18%), Chennai (-9%), Bengaluru (-8%) and Pune (-8%). IN the Mumbai Metro Region, the largest real estate market in the country, sales declined 3% sequentially.
It was only in Delhi-NCR, where home sales grew q-o-q by 6% to 16,550 units. However, due to steady fall in sales over the past two years, the market in Delhi-NCR has shrunk considerably and is now features at 5th spot in the pecking order.
According to analysts at Anarock, the bull run in residential sales across the top 7 cities tamed down marginally in the second quarter of 2024, on the backdrop of increasing property prices and a high base record of the previous quarter (Q1 2024).
“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,” says Anuj Puri, Chairman, Anarock Group.
Despite the sequential fall, sales grew on a year-on-year basis in most markets – however at a lower pace. Overall the housing market grew 5% y-o-y to 115,090 units. But sales declined by 20% in Kolkata and 9% in Chennai.
New launches, during the quarter, increased 6% q-o-q across India, with markets like Hyderabad (-40%), Chennai (-29%), Kolkata (-50%) recording massive fall in new supply of homes. In Delhi-NCR and MMR, however, new supply grew by 134% and 31%, respectively.
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