The residential real estate market across India’s top seven cities experienced an 11% decline in housing sales year-on-year, with approximately 107,060 units sold in Q3 2024, down from over 120,290 units in Q3 2023. Despite this dip, sales continued to outpace new supply, signaling persistent demand in the market.
According to ANAROCK’s latest data, the Mumbai Metropolitan Region (MMR) led the sales with around 36,190 units, followed by Pune at approximately 19,050 units. Together, these two cities accounted for 52% of total sales in the quarter. Other cities, including Bengaluru, NCR, and Hyderabad, also reported declines in sales compared to both the previous quarter and the same period last year.
New housing supply also saw a significant decrease, falling 19% to approximately 93,750 units in Q3 2024, the lowest figure since Q1 2023. MMR topped the new supply list with around 29,615 units launched, while Bengaluru followed with about 15,915 units. Notably, NCR and Chennai experienced remarkable increases in new launches of 53% and 51%, respectively.
In terms of price segments, the luxury housing market (priced above INR 1.5 Cr) constituted 33% of new supply, the highest share recorded, whereas affordable housing dropped to a mere 13%, its lowest ever. The overall available housing inventory across the top seven cities decreased by 8% year-on-year, from over 610,000 units in Q3 2023 to approximately 564,415 units in Q3 2024.
Residential prices in the top seven cities surged by 23% year-on-year, with Hyderabad witnessing the highest increase at 32%. Bengaluru and NCR followed closely with price hikes of 29% each.
Anuj Puri, Chairman of ANAROCK Group, attributed the sales slowdown to high prices and seasonal factors, such as the monsoon and the ‘shraad’ period, when many defer home purchases. However, he expressed optimism for the upcoming festive quarter (October to December), which traditionally sees a rise in demand, as developers prepare to launch several projects and promotional offers.
Overall, while the market is stabilizing after a period of rapid growth, Puri noted that the pace of future growth may not match the steep increases seen in the past one to two years.
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