Housing sales plummet 8% in the second quarter of 2024 amid soaring property prices

Average residential property prices across the top 7 cities increased in the range of 4-10% in Q2 2024 when compared to Q1 2024, amid high residential sales.
Representational image.
Representational image.

Housing sales across India’s top 7 cities declined marginally in the second quarter of 2024 due to increasing property prices and a high base record of the previous quarter (Q1 2024). The latest data issued by property consultant ANAROCK shows that housing sales witnessed a quarterly drop of 8% and stood at approx. 1,20,340 units in Q2 2024 across the top 7 cities, against approx. 1,30,170 units sold in Q1 2024. However, on a yearly basis, there has been a 5% rise in residential sales.

Average residential property prices across the top 7 cities increased in the range of 4-10% in Q2 2024 when compared to Q1 2024, amid high residential sales. On a yearly basis, the top 7 cities recorded a significant average price rise of between 13 - 39%.

Anuj Puri, Chairman – ANAROCK Group, says, “The quarterly decline seen in housing sales is essential because of the all-time high base considered in the previous quarter, when more than 1.30 lakh units were sold. Most importantly, this drop is also due to the significant hike in property prices over the last one year, which in turn has prompted many investors to take a breather.”

“NCR witnessed the highest quarterly jump of 10% in Q2 2024 while Hyderabad saw the highest yearly jump of 38% in average residential prices,” says Puri. “However, if prices are kept in check henceforth, housing sales may not be majorly impacted in the upcoming quarters.”

Source| ANAROCK Research

The two western cities - Mumbai Metropolitan Region (MMR) and Pune - accounted for over 52% of the total sales in the top 7 cities with over 62,685 units sold altogether in these cities in Q2 2024. Delhi National Capital Region (NCR) is the only city to see a quarterly rise (of 6%) in housing sales in the quarter against Q1 2024.

Source| ANAROCK Research

New launches across the top 7 cities continued to break previous records with a 6% Q-o-Q rise – from approx. 1,10,870 units in Q1 2024 to approx. 1,17,170 units in Q2 2024. MMR and Pune saw the maximum new supply, accounting for 54% of the total new launches across the top 7 cities. Individually, the two cities saw 31% and 1% quarterly increases in their new supply, respectively. Notably, NCR witnessed a 134% Q-o-Q jump in new supply in Q2 2024 against Q1 2024.

Aakash Ohri, Jt. Managing Director & Chief Business Officer, DLF Homes, said that residential real estate has not only served as a sanctuary for end-users but has also emerged as an attractive investment avenue. “The substantial returns offered by residential properties, especially luxury homes, have fueled an increasing trend of purchasing homes for investment purposes,” added Ohri. 

Nesara B S, Chairman, Concorde, said, “Over the last three years, the real estate sector has witnessed above normal sales. This can be attributed to the change in preference of potential home buyers. With the increase in prices in the last few quarters, we expect sales to normalise. Given the growth that the real estate sector is witnessing currently, we expect the momentum to continue and growth to be consistent over the next four to five years.”

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