In the first quarter of fiscal year 2025, the Pan India residential market reported robust performance with sales of approximately 163,586 units, translating into a total revenue of ₹179,052 crore. Despite a slight dip in overall new launches, significant growth in specific segments and regions underscores a nuanced market landscape.

Top Cities Lead the Charge

The market remains heavily influenced by the top eight cities, which together accounted for 77% of total sales and a commanding 85% of the quarterly sales value. The Mumbai Metropolitan Region (MMR) emerged as a frontrunner, contributing 24% of national sales and 27% of the sales value, with Pune following closely behind with 22,546 units sold.

Segment-wise Insights

The segment priced between ₹50 lakhs and ₹1 crore showcased the highest growth, with a 9% increase in sales quarter-over-quarter (QoQ) and a notable 10% rise in sales value. Conversely, the ultra-luxury segment experienced stagnation in the top eight cities. The ₹1 crore to ₹2 crore segment also saw moderate growth, with a 3% increase in sales QoQ and a 5% rise in sales value.

New Launches and Affordable Housing

New launches across Pan India fell by 3% this quarter. However, the less than ₹30 lakhs segment bucked the trend with an impressive 28% surge in new launches, highlighting a growing appetite for affordable housing. This positive shift is particularly pronounced in the top eight cities, where new launches in the less than ₹30 lakhs segment increased by 36%.

Tier 2 Cities Performance

Tier 2 cities experienced a mixed bag of results. While most segments saw declines in sales, the ₹1 crore to ₹2 crore segment stood out with an 8% QoQ growth. The 50 lakhs to ₹1 crore segment saw the most substantial increase in new supply, up by 21%.

Price Trends and Market Sentiment

The overall residential market witnessed a 5.71% year-over-year (YoY) price increase from June 2023 to June 2024. Noteworthy price hikes were observed in Noida and Greater Noida with a 17% YoY increase, and Ghaziabad with a 14.3% rise. Navi Mumbai saw an 8% increase in prices. Despite a broad price growth, 45% of apartment projects experienced a modest 0% to 5% increase, while 35% saw a more substantial rise of 5% to 10% YoY.

Unsold Stock and Market Dynamics

The unsold supply across Pan India decreased slightly by 0.5%, with a monthly inventory overhang of 20 months. In the top eight cities, unsold stock remained steady, maintaining a 21-month overhang, while Tier 2 cities saw a 3% reduction in unsold stock, with a monthly overhang of 16 months. The MMR region continues to hold the highest proportion of unsold inventory, comprising 30% of Pan India’s total stock and a 25-month inventory overhang.

Conclusion

The Q1 FY 25 performance of the Pan India residential market highlights a sector in transition, with notable growth in affordable housing and varying trends across different regions and segments. As the market adapts to shifting demands and economic conditions, these trends provide a mixed but optimistic outlook for future quarters.

You May Also Like

Avinash Bhosale Buys Rs 103 Crore Duplex In Mumbai

Avinash Bhosale’s Abeey’s Realcon LLP in the month of May registered a…

Shapoorji Pallonji Real Estate signs Shahid and Mira Kapoor to endorse its VANAHA project in Pune

Shapoorji Pallonji has announced the signing of renowned celebrity couple Shahid Kapoor…

MahaRERA Is Tracking Investment Worth Rs 8 Lac Crore

MahaRERA is tracking Rs 8 lakh crore of investment through online. The…

Office sector sees robust demand with projected net absorption of 37-39 mn sq ft in 2023

·       2023 net absorption levels to match previous year, surpassing 2017-2019 average ·       2024…