Despite the typical surge in property market activity during the festive season, there is concerning news for the sector. According to PropTiger.com’s “Real Insight” report on India’s residential market, home sales in the top eight cities saw a 5 per cent decline during the July-September quarter.
The report reveals that 96,544 units were sold in this period, compared to 1,01,221 units during the same quarter in 2023. The dip in sales is attributed to fewer new offers and rising property prices, signalling potential challenges for buyers and developers in the real estate market amidst the festive season.
The report from PropTiger highlights a significant drop in the number of new residential units launched in the top eight markets, with a 25 per cent year-on-year decline. In the July-September quarter, only 91,863 units were launched, compared to 1,23,080 units in the same period of the previous year. Additionally, the report points to a sharp 20 per cent average increase in home prices across these cities, further affecting affordability. This price surge, combined with the reduced number of new launches, is making it more challenging for buyers to enter the market, compounding the slowdown in residential sales.
According to data, house sales have increased only in the Delhi-National Capital Region (NCR). There has been a decline in the other seven major cities. During July-September, sales in Delhi-NCR increased by 29 per cent year-on-year to 10,098 units. It was 7,800 units in the same period last year. However, sales in Ahmedabad declined by nine per cent to 9,352 units from 10,305 units, in Bengaluru by 11 per cent to 11,160 units from 12,588 units, in Chennai by eight per cent to 3,560 units from 3,874 units, in Hyderabad by 19 per cent to 11,564 units from 14,191 units and in Kolkata by 22 per cent to 2,796 units from 3,607 units
Residential property sales in the Mumbai Metropolitan Region declined by one per cent to 30,010 units from 30,299 units during the period under review. Residential sales in Pune declined by three per cent to 18,004 units from 18,557 units in the same period a year ago. We are seeing a healthy slowdown in market activity, which is beneficial for end users as it brings sustainable growth. Prices have increased by three per cent to 50 per cent in some key areas of large markets in the last few quarters, which has impacted immediate purchase decisions.” However, Wadhawan expects buyers to gradually adjust to the new price realities.
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