New housing launch and sales in the third quarter of Calendar Year 2024 in top 9 cities showed a decline of 11% and 18% respectively, according to a data by real estate data analytics firm PropEquity.
The NSE-listed firm said that new launches in the July-September quarter of CY 2024 fell to 93,693 units from 1,05,655 units in the same period last year while sales fell to 1,04,393 units in Q3 CY2024 from 1,26,848 units in the same period last year.
PropEquity tracks housing supply and absorption data in NCR, Mumbai, Navi Mumbai, Thane, Pune, Bengaluru, Hyderabad, Chennai and Kolkata.
Commenting on the data, Mr. Samir Jasuja, CEO & Founder, PropEquity said: The demand for real estate continues to be robust as even in this quarter the absorption/sales is higher than the new launches and such marginal drops in this quarter is a historic trend and not symptomatic of any adverse situation. In Hyderabad and Navi Mumbai, the majority of new real estate launches are in plots rather than apartments, indicating a decline in supply and absorption of apartments in these cities. It is also important to note that Hyderabad witnessed a historical high of 94,629 units of supply in 2023 therefore reduction in new launches in 2024 is quite logical.”
According to the data, on Y-o-Y basis, only NCR, Mumbai and Thane saw rise in new supply at 221%, 18% and 11% respectively in this quarter compared to Q3 2023. Hyderabad (54%), Kolkata (48%), Chennai (23%), Bengaluru (19%), Navi Mumbai (19%) and Pune (12%) witnessed a significant drop compared to Q3 2023. However the drop is not steep when compared to the previous quarter i.e. Q2 2024.
The data further pointed out that, on Y-o-Y basis, the total absorption rose only in Delhi NCR (22%) and Navi Mumbai (4%) while falling in other seven cities with Hyderabad recording the highest fall at 42%, followed by Bengaluru (26%), Kolkata (23%), Pune (19%), Chennai (18%), Mumbai (17%) and Thane (10%).
P.E. Analytics Ltd., an NSE-listed company, owns and operates PropEquity which is India’s largest online real estate data and analytics platform covering over 1,70,000+ projects of 57,000+ developers across over 44 cities in India with more than 16 years of catalogued data. We add approximately 700 projects every month. It is a premium Business Intelligence product- a first of its kind in India in the Realty space.
Sanju Bhadana, MD, 4S Developers: In the past couple of years, the NCR market has seen tremendous growth in infrastructure development. The result of which is evident from the rising investment from both private equity players and homebuyers. The rise in demand for luxury homes across several micro markets in NCR reflects the impact the infrastructure projects like Dwarka expressway, Delhi-Mumbai expressway, Noida International airport, metro expansion and high-speed rail network among others are having on the property market in the region. We anticipate that the real estate market in the region will continue to perform well and maintain the sales momentum seen over the past few years.
Shiwang Suraj, Founder & Director of Gurugram-based property consulting firm InfraMantra: The real estate market has traditionally been slow in the third quarter with developers holding up their launches for the festive quarter. However, NCR market has defied this trend. The enquiries from homebuyers have been encouraging and we are hopeful that the next quarter sales could potentially be higher than previous festive quarters.
Sunil Pareek, Executive Director, Assetz Property Group
Statistically, while Q3 shows a mixed outlook in India with a dip in sales and new launches esp in South, this is primarily due to inventory constraints and not a result of reducing demand. Bengaluru, for example, continues to display strong fundamentals with a 9% year-on-year growth in housing absorption and the lowest inventory overhang among major cities at just 7-8 months. Long-term demand remains robust, driven by increasing affordability and young professionals. As supply adjusts, the numbers will catch up in the coming quarters. Sales fluctuations are natural, particularly given the larger base and seasonal factors, but the market is far from slowing down.
Vijay Harsh Jha, founder and CEO of property brokerage firm VS Realtors:
The NCR market has been performing exceptionally well defying the all-India trend. The sense from the market is that developers are on a wait mode. With the expectation of strong demand due to the auspicious nature of the months, developers are offering homebuyers incentives and offers to induce a purchase. The NCR market could outperform itself this year.
Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd
The decision of upliftment of the embargo on approvals for Stilt+ 4 floors could not have come at a more opportune time. It will increase the availability of quality homes, thus, boosting the homebuyers’ confidence in Gurugram's thriving real estate market ahead of the upcoming festive season. Moreover, this would also play a role in stabilizing rising property prices, ultimately benefiting the homebuyers. The move is also expected to help developers save costs, which in turn may be passed to the end users.
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