India’s housing market is experiencing a significant dip in sales during the October-December 2024 quarter, with an estimated 21% decline across nine major cities. The expected total sales stand at 1.08 lakh units, down from 1.37 lakh units in the same period last year, according to real estate analytics firm PropEquity. This drop is attributed to a high base effect from the previous year, though sales are projected to rise by 5% compared to the preceding September quarter, buoyed by festive demand.
Sales Decline Across Major Cities
The housing sales forecast indicates sharp declines in several major cities:
- Hyderabad: A steep 47% drop, with sales expected to fall to 12,682 units from 24,044 units in 2023.
- Bengaluru: A 13% drop, with sales likely to dip to 14,957 units from 17,276 units.
- Chennai: A 9% decline, with sales falling to 4,266 units from 4,673 units.
- Mumbai: A 27% fall, with sales projected at 10,077 units, down from 13,878 units.
- Navi Mumbai: A 13% decrease, with sales forecast at 7,478 units, down from 8,607 units.
- Thane: A 16% decline, with 21,893 units expected, down from 26,099 units.
- Kolkata: A significant 33% drop, with sales expected to reach 3,763 units, down from 5,653 units.
- Pune: A 24% dip, with sales projected at 20,230 units, down from 26,641 units.
Delhi-NCR Market Surprises with Growth
In contrast to the overall downturn, the Delhi-NCR housing market is poised to see growth. Sales in the region are set to rise by 25%, reaching 12,915 units in the December quarter of 2024, compared to 10,354 units in the same period last year. This surge is driven by strong demand, particularly in Gurugram, where luxury homes have seen unprecedented demand in recent years.
Vivek Singhal, CEO of Smartworld Developers, attributed this growth to both end-users and investors flocking to the Delhi-NCR market, while Vijay Harsh Jha, founder and CEO of VS Realtors, noted that the rise in sales and launches aligns with expectations for the festive season.
Outlook for the Real Estate Market
While the overall market is experiencing a slowdown, the fundamentals of the real estate sector remain solid. Samir Jasuja, CEO & Founder of PropEquity, explained that despite the decline, the supply-to-absorption ratio for 2024 mirrors that of 2023, indicating a stable market. The seasonal uptick in demand suggests that the market could recover in the short term, particularly in regions like Delhi-NCR.
PropEquity, which tracks over 1.7 lakh projects across India, continues to provide insights into the evolving trends of the real estate sector, with a close eye on the dynamics of key urban markets.
