Housing supply in top 9 cities drops 33%, sales fall 21% in Q4 CY24; Hyderabad sees biggest drop in supply

Hyderabad reported the highest decline in supply of new units, according to the data from PropEquity

Housing supply in the top nine real estate markets dropped by around 33 percent on an annualised basis and housing sales by 21 percent on-year in October-December 2024.

According to data from National Stock Exchange-listed real estate data analytics firm PropEquity, supply fell to 85,765 housing units in the last three months of 2024, against 1,27,936 units in the same period last year. However, supply was 7 percent higher than in July-September 2024, when it was 80,284 units.

Housing sales fell to 1,08,261 units in October-December 2024 versus 1,37,225 units in the same period last year. However, on a sequential basis, sales were up 5 percent, from 1,03,213 units in the fourth quarter of the previous calendar year, data showed.

The top nine markets are Bengaluru, Hyderabad, Chennai, Kolkata, Pune, Thane, Navi Mumbai, Mumbai and Delhi-National Capital Region. Only Delhi-NCR—which encompasses the satellite cities of Gurugram in Haryana and Noida in Uttar Pradesh, among others—bucked the national trend as housing supply in the area rose 59 percent to 11,223 units in Q4 CY24 from 7,072 units in the same period last year, while sales rose 25 percent to 12,915 units in from 10,354 units over the same time frame.

On a yearly basis, housing supply fell the most in Hyderabad (52 percent), followed by Thane (48 percent), Pune (41 percent), Kolkata (37 percent), Navi Mumbai (30 percent), Mumbai (25 percent), Chennai (17 percent) and Bengaluru (11 percent).

Hyderabad led the fall in sales table as well (47 percent), followed by Kolkata (33 percent), Mumbai (27 percent), Pune (24 percent), Thane (16 percent), Navi Mumbai (13 percent), Bengaluru (13 percent) and Chennai (9 percent).

Why the dip in supply and sales?

Experts attribute the dip in housing supply and sales to 2023 being a standout year on both parameters.

Samir Jasuja, CEO and founder, PropEquity, explained, “The y-o-y basis drop is due to the high base effect, as 2023 was a peak year for both sales and launches. A closer look at the numbers reveals that despite the drop, the supply-to-absorption ratio in 2024 remains the same as 2023, which indicates that the fundamentals of the real estate sector are strong and healthy,” Jasuja said. He added that though the annual trend shows a dip, housing supply and sales on a quarterly basis were higher owing to the festive season demand.

Sunil Sisodiya, founder, Geetanjali Homestate, a Gurugram-based real estate consultancy, said that the yearly decline in housing supply and drop in sales in the last three months paint a complex picture shaped by localised challenges and shifting consumer preferences.

"Hyderabad’s steep fall in supply and sales stems from stricter zoning laws and a slowdown in IT sector-driven demand. Conversely, in Mumbai and Chennai, high property prices and elevated interest rates deterred mid-segment buyers, leading to a broader market correction. However, Delhi-NCR bucked the trend, leveraging targeted infrastructure upgrades and affordable housing schemes to attract both developers and buyers," Sisodiya told Moneycontrol.

He said that such regional divergence highlights the importance of city-specific strategies. The data indicates that areas with proactive urban planning and diversified demand drivers remain resilient, signalling potential pathways for a broader recovery.

Garvit Tiwari, director and co-founder, InfraMantra, a real estate consultancy also based in Gurugram, said that with the economy showing some signs of a slowdown, the pause in exuberance from homebuyers and investors was felt through the year.

“This pause may also be on account of low or minimal activity during the April-September period owing to general elections and monsoon. As a result, home sales seem to have moderated from the 2023 peak, but the health of the real estate sector continues to be robust,” he said.