×

Housing Sales on a Slide

Torbit - July 06, 2024 - - 0 |

In the wake of increasing property prices and a high base record of first quarter of 2024, brakes are put on the bull run with residential property prices seeing a decline in the second quarter.  

 Latest Anarock Research data reveals that housing sales witnessed a quarterly drop of 8 percent and stood at approx.  120340 units in Q2 2024 across the top 7 cities, against approx. 1,30,170 units sold in Q1 2024. However, on a yearly basis, there has been a 5 percent rise in residential sales. 

The two western cities – MMR and Pune – accounted for over 52 percent of the total sales in the top 7 cities with over 62,685 units sold altogether in these cities in Q2 2024. NCR is the only city to see a quarterly rise of 6 percent in housing sales in the quarter against Q1 2024.

New launches across the top 7 cities continued to break previous records with a 6 percent Q-o-Q rise – from approx. 1,10,870 units in Q1 2024 to approx. 1,17,170 units in Q2 2024. MMR and Pune saw the maximum new supply, accounting for 54 percent of the total new launches across the top 7 cities. Individually, the two cities saw 31 percent and 1 percent quarterly increases in their new supply, respectively.

Notably, NCR witnessed a 134 percent Q-o-Q jump in new supply in Q2 2024 against 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.”

Data indicates that average residential prices have seen a quarterly jump of 7 percent while annual rise of a significant 25 percent in the top 7 cities.

NCR witnessed the highest quarterly jump of 10 percent in Q2 2024 while Hyderabad saw the highest yearly jump of 38 percent in average residential prices. However, if prices are kept in check henceforth, housing sales may not be majorly impacted in the upcoming quarters, feels Puri.

New Launch Overview 

The top 7 cities recorded approx. 1,17,170 new units launched in Q2 2024, against approx. 1,10,870 units in Q1 2024 – increasing by 6 percent over the previous quarter. The key cities contributing to new launches in Q2 2024 were MMR (Mumbai Metropolitan Region), NCR, Pune, and Bengaluru, which together accounted for 82 percent of the supply addition.

  • MMR saw approx.  44120 units launched in Q2 2024 – increasing by 31 percent Q1 2024 and over 2 percent on yearly basis. More than 64 percent new supply was added in the sub-INR 80 lakh budget segment.
  • Pune added new supply of approx.  18920 units in Q2 2024 compared to approx. 18,770 units in Q1 2024 – an increase of 1 percent.   On a yearly basis, the city recorded a 11 percent decline in new supply. Over 73 percent of the new supply in Q2 2024 was added in the mid and premium segments (units priced between INR 40 lakh to INR 1.5 Cr.)
  • Hyderabad added approx.  13750 units in Q2 2024, a quarterly decline of 40 percent. but a 31 riserise against the corresponding period in 2023. Over 69 percent of the new supply in Q2 2024 was added in the mid and premium price segments.
  • Bengaluru added nearly 16020 units in Q2 2024, declining quarterly by 3 percent. On a yearly basis, there was 40 rise rise.  Approx. 83 percent of the new supply was added in the premium and luxury segments (INR 80 Lakh onwards) combined.
  • NCR saw a whopping 134 percent increase in new launches against Q1 2024, with approx.  17030 units launched in Q2 2024. A whopping 82 percent of the new launches in second quarter this year were in the luxury segments priced above INR 1.5 Cr.
  • Chennai added approx.  5180 units in Q2 2024, a quarterly decline of 29 percent against Q1 2024 and a yearly increase of 3 percent over Q2 2023. Over 93 percent was added in the mid and premium segments.
  • Kolkata added approx.  units 2150 units in Q2 2024, a decrease of 50 percent over Q1 2024 and 13 percent drop against Q2 2023. Approx. 64 percent new supply was added in the mid segment priced between INR 40 lakh – INR 80 lakh.

City wise Supply (Units) and Q-o-Q Percentage Change  

Overall Sales Overview

Approx. 1,20,340 units were sold in Q2 2024 across the top 7 cities – a quarterly decline of 8 percent over Q1 2024. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 92 percent sales in the quarter. On a yearly basis, the top 7 cities recorded a 5 percent increase in housing sales with approx. 1,15,090 units sold back in Q2 2023.

  • NCR is the only city to see quarterly growrh of 6 percent in housing sales among the top 7 cities – from  about 15650 units  in Q1 2024 to approx.  16650 units in Q2 2024.
  • MMR witnessed the maximum sales at approx.  41540 units in Q2 2024, against approx.  nearly 42920 units in Q1 2024 – declining by 3 percent.
  • Pune witnessed housing sales of   21145 units in Q2 2024, decreasing by 8 percent over Q1 2024.
  • Bengaluru too saw housing sales decrease by 8 percent Q2 2024 against Q1 2024, with approx.  16360 units sold in the second quarter this year.
  • Chennai saw approx.  nearly 5020 units sold in Q2 2024 – decreasing by 9 percent against Q1 2024.
  • Hyderabad recorded sales of about 15085 units in Q2 2024, a drop of 23 percent over Q1 2024.
  • Kolkata saw housing sales decrease by 18 percent in the quarter against preceding quarter (Q1 2024); 4460 units were sold in Q2 2024.

City wise Absorption (In Units) and Q-o-Q percentage change

Price Movement

Average residential property prices across the top 7 cities increased in the range of 4-10 percent in Q2 2024 when compared to Q1 2024 amid high residential sales. NCR recorded the highest quarterly jump of 10 percent with the average price at INR 6,800 per sq. ft. as of Q2 2024-end.

On a yearly basis, the top 7 cities recorded a significant average price rise of between 13 – 39 percent. Hyderabad recorded the highest yearly jump of 39 percent in average residential prices in Q2 2024 against Q2 2023.

Available Inventory 

Amid robust sales, available inventory across the top 7 cities reduced by 1 per cent on a quarterly basis to approx. 5.78 lakh units as of Q2 2024-end. On a yearly basis, there has been a 6 per cent decline in the available inventory across the top 7 cities. NCR witnessed the highest yearly decline of 22 percent – from approx. 1.11 lakh units by Q2 2023-end to approx. 86,900 units as of Q2 2024-end. This is a significant reduction in this top realty hotspot in the country which reeled under excessive unsold stock in previous years.

Leave a Reply