Sales have decreased by 11% in seven major cities.
There is also a decline in new supply of properties.
Reveals Anarock report.
There has been a decline in home sales across seven major cities in the country. Compared to the July-September quarter of last year, there is an 11% decrease in home sales during the same period this year. In Q3 2023, 120,290 units were sold, whereas only 107,060 homes were sold in Q3 this year, as revealed by property consultant Anarock.
Looking at the cities individually, the Mumbai Metropolitan Region recorded the highest sales with 36,190 units. Pune follows in second place with 19,050 units sold. Together, these two cities account for 52% of total sales.
Regarding launches, in Q3 2024, 93,750 new units were launched, which is a 19% decrease on an annual basis compared to the same period last year, when 116,220 units were initiated. Consequently, the available inventory in the seven major cities of the country also declined by 2% on a quarterly basis. On an annual basis, it dropped by 8%, reaching 5,64,415 units. The report indicates that new supply has fallen below the one lakh mark for the first time since the January-March 2023 quarter.
Due to rising input costs and significant sales growth, residential property prices in the seven major cities have increased by 23% annually. The price per square foot was Rs 6,800 in Q3 2023, rising to Rs 8,390 in Q3 2024, reflecting a 4% increase on quarterly basis.
In terms of new supply, the luxury housing segment (priced above Rs 1.5 crore) holds the highest share at 33%, followed by the mid-segment (Rs 40 lakh to Rs 80 lakh) at 23%. The share of affordable housing has decreased to 13%.
Anuj Puri, Chairman of Anarock, stated, “Home sales have declined in the third quarter. In addition to high prices, the monsoon season has contributed to this decline. Growth in the upcoming quarters may not be as robust as seen in the last one to two years. Home prices seem to have peaked and are gradually stabilizing in some cities. Developers are likely to offer various incentives and discounts to attract buyers in the upcoming festive quarter.”
