Housing Sales dips by 11% among Top 7 Cities during Q3-2024: Anarock Report

After a 2-year bull run, residential real estate activity across the top cities stabilized in Q3 2024 - typically a slow quarter due to the monsoon and perceived inauspiciousness. Latest ANAROCK data reveals that housing sales across the top 7 cities declined by 11% annually, clocking in at approx. 1,07,060 units in Q3 2024 against approx. 1,20,290 units in Q3 2023. However, sales continued to outstrip new supply in Q3 2024, reflecting continued health in the market.

Anuj Puri, Chairman – ANAROCK Group, says, “Among the top 7 cities, MMR recorded the highest sales of approx. 36,190 units, followed by Pune with approx. 19,050 units. Cumulatively, the two western cities accounted for 52% of the total sales across the top 7 cities in Q3 2024. All the top cities individually recorded a dip in housing sales. The top 7 cities also witnessed a drop in new housing supply, with approx. 93,750 units launched in Q3 2024 against 1,16,220 units in the corresponding period in 2023 - a 19% annual drop. Nevertheless, the fact that sales remained higher than launches indicates that the demand-supply equation remains robust.” 

The report showed that MMR led new supply in Q3 2024 with about 29,615 units, followed by Bengaluru with 15,915 units. NCR and Chennai saw significant increases in new supply, up 53% and 51%, respectively. The luxury segment (over INR 1.5 Cr) made up 33% of new supply, while the premium segment (INR 80 lakh – INR 1.5 Cr) accounted for 30%. The mid segment contributed 23%, and the affordable segment dropped to 13%.

Total housing inventory fell 8% year-on-year across the top seven cities, from over 610,000 units in Q3 2023 to around 564,000 in Q3 2024, driven by strong sales. Average residential prices rose 23% compared to last year, with Hyderabad at 32% growth, and Bengaluru and NCR at 29% each.

Puri also added, “Housing sales in the third quarter tapered down amid high prices and the monsoon season. As always in this period, the ‘shraad’ period also suppressed demand to an extent as many Indians defer home buying in this period. Overall, the housing market is stabilizing after creating a new peak in Q1 2024.”

Developers have several projects lined up during the festive quarter (Oct.-Dec.) during which the market is expected to see an uptick in demand.

"That said, growth in the upcoming quarters may not be as steep as seen in the last 1-2 years," says Puri. "Residential prices too seem to have peaked out and are now gradually stabilizing across cities. Developers are likely to roll out several offers and discounts during the upcoming festive quarter to attract buyers." 

New Supply Overview

In Q3 2024, around 107,060 units were sold, marking an 11% decline both year-on-year and quarter-on-quarter. NCR, MMR, Bengaluru, and Pune accounted for 80% of sales. MMR led with approximately 36,190 units sold (down 13% quarterly, 6% annually). Pune sold about 19,050 units (down 10% from Q2, 17% from Q3 2023), while NCR recorded 15,570 units (down 2% year-on-year, 6% quarterly). Bengaluru had 15,025 units sold (down 8% both ways), Hyderabad saw 12,735 units (down 16% quarterly, 22% annually), Kolkata sold 3,980 units (down 14% quarterly, 25% annually), and Chennai reported 4,510 units (down 10% quarterly, 9% annually).

Housing Sales Overview

In Q3 2024, around 107,060 units were sold, marking an 11% decline both year-on-year and quarter-on-quarter. NCR, MMR, Bengaluru, and Pune accounted for 80% of sales, with MMR leading at approximately 36,190 units (down 13% quarterly, 6% annually). Pune saw about 19,050 units sold (down 10% from Q2, 17% from Q3 2023), NCR had 15,570 units (down 2% year-on-year, 6% quarterly), and Bengaluru sold around 15,025 units (down 8% both ways). Hyderabad recorded approximately 12,735 units (down 16% from Q2, 22% from Q3 2023), Kolkata saw about 3,980 units (down 14% quarterly, 25% annually), and Chennai reported 4,510 units sold (down 10% quarterly, 9% annually).

Due to escalating input costs as well as significant sales growth, average residential property prices across the top 7 cities collectively rose by 23% annually - from INR 6,800 per sq. ft. in Q3 2023 to INR 8,390 per sq. ft. in Q3 2024. Among the top 7 cities, Hyderabad saw the highest 32% jump in average prices. On a quarterly basis, average prices in the top 7 cities rose by 4%.

Mohit Jain, Managing Director, Krisumi Corporation, said, “The Indian real estate sector, especially in mid and luxury residential segments, has grown significantly in recent years. Middle and upper-middle-class buyers favor spacious homes with modern amenities, driving demand for luxury units priced between Rs 3 crore and Rs 5 crore, particularly in Gurugram. This trend is expected to continue, with the festive season likely to highlight ongoing interest.”