In a less favourable development for the real estate sector, housing supply in the top nine cities is projected to decline by 33 per cent, while housing sales are expected to drop by 21 per cent in the October-December quarter of CY2024 (Q4CY24), according to real estate consultancy firm PropEquity on Saturday.
Housing sales fell to 108,261 units in Q4CY24, compared to 137,225 units in the same period last year. However, sales saw a 5 per cent increase from 103,213 units recorded in Q3CY24 (July-September).
Similarly, housing supply dropped to 85,765 units in Q4CY24 from 127,936 units in the corresponding period last year. Despite this decline, supply rose by 7 per cent from 80,284 units in Q3CY24.
The top nine cities covered in the report include Bengaluru, Hyderabad, Chennai, Kolkata, Pune, Thane, Navi Mumbai, Mumbai, and Delhi-NCR. Among these, only Delhi-NCR defied the national trend.
Housing supply in Delhi-NCR surged by 59 per cent to 11,223 units in Q4CY24 from 7,072 units in the same quarter last year. Similarly, sales increased by 25 per cent to 12,915 units in Q4CY24 from 10,354 units in the corresponding period last year.
On a year-on-year (Y-o-Y) basis, housing sales fell the most in Hyderabad (47 per cent), followed by Kolkata (33 per cent), Mumbai (27 per cent), Pune (24 per cent), Thane (16 per cent), Navi Mumbai (13 per cent), Bengaluru (13 per cent), and Chennai (9 per cent).
On a quarter-on-quarter (Q-o-Q) basis, housing sales increased in six cities—Delhi-NCR (20 per cent), Bengaluru (14 per cent), Hyderabad (9 per cent), Thane (7 per cent), Kolkata (2 per cent), and Mumbai (0 per cent)—but declined in three cities—Chennai (10 per cent), Navi Mumbai (4 per cent), and Pune (4 per cent).
“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,” said Samir Jasuja, CEO & Founder, PropEquity.