Mumbai: According to the quarterly analysis of digital real estate brokerage company PropTiger.com, home sales declined by 6% in eight major residential markets of India, while home sales in Mumbai fell by 8 per cent. New supply remained stable. Property brokerage platform PropTiger is part of RERA India, owned by Housing.com. The company has released its quarterly data on housing demand and supply in the ‘Real Insight Residential – April-June 2024’ report. The report covers the housing markets of Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR, Mumbai MMR and Pune.
According to the data, a total of 113,768 units were sold during the April-June quarter, while the number was 1,20,642 in the previous quarter. Except for Bengaluru (30% growth) and Delhi-NCR (10% growth), all cities witnessed a decline in sales during the quarter.
Vikas Wadhwane, Group CFO, RERA India and Business Head, PropTiger.com, said, “Demand for homes declined during the April-June period due to the general elections, however, consumer sentiment remained extremely positive towards investing in real estate due to strong fundamentals. Amid expectations of a pro-investment Union Budget following the formation of a new government at the Centre, we are confident of a pick-up in unit sales in the coming quarters, especially during the festive months.”
Wadhwa further added, “The developer community has also turned cautious, as reflected by a decline in new launches across half of the cities covered in our analysis, in anticipation of policy changes in the upcoming Union Budget that will pave the way for India to become the world’s third-largest economy by 2027-28.”
Mumbai MMR, Pune home sales fall:
According to quarterly data, home sales in Mumbai Metropolitan Region (MMR) fell 8 per cent to 38,266 units from 41,954 units. Meanwhile, home sales in Pune fell 5 per cent to 21,925 units in the April-June period from 23,112 units in the previous quarter. Home sales in Ahmedabad fell 26 per cent to 9,500 units in April-June from 12,915 units in January-March this year.
However, sales in Bengaluru rose 30 per cent to 13,495 units from 10,381 units. Residential property sales in Chennai fell 10 per cent to 3,984 units from 4,427 units. On the other hand, sales in Delhi-NCR rose 10 per cent to 11,065 units from 10,058 units. Home sales in Hyderabad fell 14 per cent to 12,296 units from 14,298 units. Sales in Kolkata fell 16 per cent to 3,267 units from 3,857 units.
Hyderabad, Kolkata saw sharpest decline in new supply:
The REA India group company said in a statement that new supply stood at 103,020 in the January-March quarter, which fell marginally by 1% to 101,677 units during the April-June quarter. The sharpest decline in this supply was recorded in Hyderabad (58%), followed by Kolkata (49%).
Moreover, only half of the cities selected in this analysis saw a decline in new launches, while the rest saw an increase. Compared to new launches of 1,13,774 units in Q2 2023, new launches in Q2 2024 declined 11% year-on-year.
Hyderabad and Kolkata witnessed a sharp decline in new launches, driven by a drop in sales. On the other hand, new supply in Ahmedabad doubled quarter-on-quarter, driven by an increase in average property prices.
MMR leads in both supply and sales:
With a 40% share, MMR contributed the most to new supply in the June quarter, followed by Pune (22% share) and Bengaluru (12% share). Interestingly, in terms of quarterly sales too, these three cities were the biggest contributors in that order, with MMR accounting for 34%, followed by Pune at 19% and Bengaluru at 12%.
The top localities in terms of sales were Thane West, Panvel, Dombivali, Vasai and Chembur, all located in MMR. The top localities in terms of launches were Thane West, Panvel, Vasai, Dombivali, Neral (all in MMR) and Sholinganallur (Chennai).
