Team L&M
After a two-year bull run, residential real estate activity across the top cities stabilised in Q3 2024 – typically a slow quarter due to the monsoon and perceived inauspiciousness. Latest ANAROCK data reveals that housing sales across the top seven cities declined by 11 per cent 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.
Says Anuj Puri, Chairman, ANAROCK Group, “Among the top seven cities, the Mumbai Metropolitan Region (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 seven 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 per cent annual drop. Nevertheless, the fact that sales remained higher than launches indicates that the demand-supply equation remains robust.”
City-wise, MMR topped new supply with approx. 29,615 units launched in the quarter, followed by Bengaluru with approx. 15,915 units. Interestingly, while most cities saw new supply decline annually, NCR and Chennai saw whopping 53 per cent and 51 per cent increases, respectively.
In terms of budget segments, the >INR 1.5 Cr luxury housing segment witnessed the highest new supply of 33 per cent, followed by the premium (INR 80 lakh – INR 1.5 Cr) segment with a 30 per cent share. The mid segment (INR 40– 80 lakh) contributed a 23 per cent share of the total new supply during the quarter, while the affordable segment’s share fell further to just 13 per cent – the lowest in a quarter.”
Available housing inventory saw an eight per cent yearly decline across the top seven cities amid strong sales – from over 6.10 lakh units as on Q3 2023-end to over 5.64 lakh units by Q3 2024-end. The inventory decline is largely attributable to sales exceeding new launches in the quarter.
Average residential prices in the top seven cities collectively saw double-digit growth of 23 per cent in Q3 2024 against Q3 2023. Hyderabad recorded the highest 32 per cent annual growth, followed by Bengaluru and NCR with 29 per cent increases each.
“Housing sales in the third quarter tapered down amid high prices and the monsoon season,” says Puri. “As always in this period, the shraadh 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
The top seven cities saw approx. 93,750 units launched in Q3 2024, against 1,16,220 units in Q3 2023 – a 19 per cent annual decline. On a quarterly basis, there was a 20 per cent drop. In Q2 2024, approx. 1,17,170 units were launched across the top seven cities.
The key cities contributing to new supply in Q3 2024 were MMR (Mumbai Metropolitan Region), Bengaluru, NCR (National Capital Region), and Hyderabad, which together accounted for 78 per cent of the total addition.
MMR saw approx. 29,615 units launched in Q3 2024 – an 18 per cent yearly decrease and a 33 per cent quarterly decline. Over 53 per cent of the new supply during the quarter was added in the INR 40 lakh to INR 2.5 Cr segment
Bengaluru added approx. 15,915 units in Q3 2024 – a quarterly decline of one per cent but seven per cent annual growth. Approx. 87 per cent of the new supply was added in the mid and upper-mid-segment (INR 40 lakh – INR 1.5 Cr)
NCR saw a 53 per cent yearly increase in new launches with approx. 14,130 units added in Q3 2024. On quarterly basis, this market a 17 per cent decline compared to Q2 2024. A massive 64 per cent of the new supply in the quarter was added in the ultra-luxury segment (>INR 2.5 Cr)
Hyderabad added approx. 13,890 units in Q3 2024 compared to 24,900 units in Q3 2023 – a 44% yearly decline and a one per cent quarterly increase in new launches. A whopping 97 per cent of the new supply was added in the premium, luxury, and ultra-luxury segments (priced upward of INR 80 lakh)
Pune added approx. 12,450 units in Q3 2024, witnessing a yearly decline of 49 per cent and a 34 per cent quarterly dip in new supply. Over 74 per cent of the new supply was added in the mid and upper-mid-segment (INR 40 lakh – INR 1.5 Cr)
Chennai added approx. 4,620 units in Q3 2024, seeing an 11 per cent quarterly decline but a 51% annual jump. Over 80 per cent of the new supply was added in the mid and upper-mid-segment (INR 40 lakh – INR 1.5 Cr)
Kolkata added approx. 3,130 units in Q3 2024, a five per cent annual decrease but a 46 per cent rise over the previous quarter. Approx. 56 per cent of the new supply was added in the sub-INR 80 lakh segment.
