Housing sales across top 8 cities dip by 26% in Q4 2024, launches down by 33%: Proptiger

Delhi-NCR topped home sales in Q4. Mumbai Metropolitan Region witnessed a 31% Y-o-Y decline in sales

Housing sales across India's prime residential markets dipped by 26% to 1.06 lakh units across eight major cities in the October-December period in 2024 compared to around 1.43 units in the same quarter in 2023, according to the latest report by PropTiger.

Housing sales across India's prime residential markets dipped by 26% to 1.06 lakh units across eight major cities in the October-December period in 2024 compared to around 1.43 units in the same quarter in 2023, according to the latest report by PropTiger. (Picture for representational purposes only)(Pixabay)

The report, titled 'Real Insight Residential: Annual Roundup 2024 by PropTiger.com’, said the drop in sales numbers could primarily be attributed to state elections in Maharashtra and Haryana, which make up three of the eight cities covered in the analysis and to elevated property prices. Barring NCR, data show home sales dipped across cities year-on-year.

Real estate consultant PropTiger, however, said that sales of residential properties in 2024 rose 6 per cent to 4,36,992 units from 410,791 in the year-ago period across eight major cities. While the MMR (Mumbai Metropolitan Region) retained its position as the market leader with 33,617 units sold, it witnessed a 31 per cent Y-o-Y (year-on-year) decline to 33,617 units from 48,553 units.

The eight major cities were Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad, and Faridabad), Mumbai Metropolitan Region (Mumbai, Navi Mumbai, and Thane), and Pune.

During October-December, PropTiger data showed that the Delhi-NCR market was the only region among the top eight cities to register positive growth in new home sales. Sales in NCR increased to 9,808 units during the fourth quarter of the 2024 calendar year from 6,528 units in the same period.

In the South, Bengaluru recorded 13,236 units sold (down 23 per cent Y-o-Y), Hyderabad 13,179 units (down 36 per cent YoY), and Chennai 4,073 units (down 5 per cent Y-o-Y).

"While the October-December festive period saw a QoQ increase in sales as expected, there was a YoY decline in sales and new launches across most regions. Factors such as global economic uncertainties, major state elections, and property price increases across the country led to a wait-and-watch approach by both developers and buyers," Dhruv Agarwala, Group CEO of Housing.com and Proptiger, said.

"While Delhi NCR stood out as the only market to register YoY growth in sales, other regions, including key markets like MMR, Pune, and Bengaluru, experienced notable declines in home sales. Looking ahead, with no immediate signs of interest rate cuts and with economic growth slowing down, the market is expected to remain cautious in the coming quarters", Agarwala added.

Hyderabad witnessed the sharpest decline in new launches in Q4

The report added that the impact of elections was also visible on fresh supply — launches of 88,661 units in Q4 2024 declined 33% YoY (from 132,423 units a year ago) as the pace of project approvals slowed due to state polls. Launch numbers during the last quarter of 2024 dropped in five of the eight cities in the report.

In Q4, new home launches across India’s top eight housing markets dropped by 33% YoY. Hyderabad witnessed the sharpest decline, with 9,066 units launched (down 66%), followed by Ahmedabad with 3,515 units (down 61%) and Kolkata with 3,091 units (down 41%).