Housing sales across the country’s top eight cities dropped by 26 percent year on year (YoY) in the October-December 2024 quarter, compared to the corresponding quarter in the last calendar year. However, sales grew by around 10 percent on a quarter on quarter (QoQ) basis, thanks to the festival season, according to a survey by PropTiger.com, a digital real estate transaction and advisory platform.
Delhi NCR, Mumbai Metropolitan Region (MMR), Pune, Kolkata, Ahmedabad, Hyderabad, Bengaluru and Chennai were the eight cities covered.
Both YoY sales and new launches dropped in the October-December quarter, PropTiger.com data showed. Real estate experts say that the drop in numbers can primarily be attributed to the assembly elections in Maharashtra and Haryana in November and October, respectively, and to elevated property prices.
Data showed that Delhi NCR stood out as the only region among the top eight cities to register a positive growth in new home sales, with 9,808 units sold in Q4, a significant rise from 6,528 units in the same period last year.
Mumbai Metropolitan Region (MMR) retained its position as the market leader, with 33,617 units sold. However, it witnessed a 31 percent YoY decline from 48,553 units during the same period in 2023. Pune followed with 18,240 units sold, down 31 percent YoY.
In the South, Bengaluru saw 13,236 units being sold (down 23 percent YoY), Hyderabad 13,179 units (down 36 percent YoY), and Chennai 4,073 units (down 5 percent YoY). Kolkata sold only 3,715 homes in Q4 2024, which came down 22 percent YoY from 4,735 units during Q4 2023. Ahmedabad saw 10,170 units being sold (down 34 percent YoY) in Q4 2024.
New launches
The impact of elections was also visible on fresh supply as launches in Q42024 declined 33 percent YoY, and the pace of project approvals slowed due to state polls. In Q4 CY2024, new home launches across India’s top eight housing markets dropped by 33 percent YoY.
Hyderabad witnessed the sharpest decline, with 9,066 units launched (down 66 percent), followed by Ahmedabad with 3,515 units (down 61 percent) and Kolkata with 3,091 units (down 41 percent).
However, on a positive note, Delhi NCR saw a 133 percent YoY surge with 10,048 units being launched, and Chennai recorded a 34 percent rise with 4,005 units. Bengaluru led with 15,157 units, marking a 20 percent YoY increase.
Why the drop in sales and new launches
Dhruv Agarwala, Group CEO, Housing.com & Proptiger.com, said that while the October-December festive period saw a QoQ increase in sales as expected, there was a YoY decline in both sales and new launches across most regions.
“Factors such as global economic uncertainties, major state elections, and property price increase across the country led to a wait-and-watch approach by both developers and buyers," he said.
He added that while Delhi NCR stood out as the only market to register a YoY growth in sales, other regions, including key markets like MMR, Pune, and Bengaluru, saw notable decline in home sales.
“With no immediate signs of interest rate cuts and with economic growth slowing down, the market is expected to remain cautious in the coming quarters,” he added.
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