PropEquity's Residential Snapshot: Q2 2024 records 20% higher Residential Sales in India

As of Q2 2024, the residential real estate market in Tier 1 cities of India reflects a dynamic landscape influenced by various economic, demographic, and policy factors. These cities, characterized by their significant economic activity, infrastructure development, and cultural prominence, play a pivotal role in shaping the country's real estate sector.

Understanding the current trends and dynamics in these Tier 1 cities provides valuable insights into the evolving preferences of homebuyers, trends in property prices, the impact of regulatory changes, and the overall investment climate. This introduction sets the stage to explore the intricacies and developments within India's Tier 1 residential market as of mid-2024.

According to the report of Proptech platform PropEquity, New Supply has witnessed 7% decline on Q-o-Q basis with 97,331 units launched in Q2 2024 as compared to 1,04,391 units in Q1 2024. The Supply in this quarter compared to the previous year corresponding quarter is down to 97,331 units from 1,11,657 units. Another reason for supply coming down marginally was because Q2 2024 is the election quarter and developers were holding back their launches during that time.

Absorption/Sales were 1,19,901 units in Q2 2024 which is a decline of 18% compared to the previous quarter which stood at 1,46,1947 units. However on a Y-o-Y basis the absorption/Sales witnessed a marginal decline of only 2% down to 1,19,901 units compared to 1,21,856 units absorbed/Sold in Q2 2023.

Q1 2024 was an extraordinary quarter with the highest absorption/Sales ever witnessed in India 1,46,147 units. Q2 is usually the slowest quarter compared to other quarters with respect to supply and absorption/sales and the supply in this quarter stood at 97,331 units which was a minor drop of 7% and absorption/Sales in the top tier 1 cities stood at 1,19,901 which is a decline of 18% from the historical high of previous quarter. However when compared to last Q2 2023 the decline in absorption/sales has been the marginal of 2%.

The Absorption/Sales been higher by 20% compared to new Supply signifies that the upswing and good health of the residential real estate market post covid is continuing.

In Delhi-NCR is the only city that witnessed increase in new supply and absorption/Sales on Q-o-Q basis with 2% and 7% respectively. Chennai and Navi Mumbai were the only other 2 cities which witnessed an increase in new supply on Q-o-Q basis by 10% and 17%.

Talking about the residential market report of Q2 2024, Mr Samir Jasuja, CEO & MD PropEquity said, “The marginal drop of new launch supply in top tier 1 cities is just 8 percent which is primarily due to election quarter & Q2 being slightly sluggish as compared to other quarters of the year. However the 20 percent higher Absorption/Sales as compared to new supply signifies upswing and good health in residential real estate continues and the market continues to be robust post covid.”