• MMR & Pune led with addition of approx. 44,120 units & 18,920 units respectively, accounting for 54% of total launches in the top 7 cities; NCR recorded the highest quarterly rise of 134% in new launches in Q2 2024
• New supply in luxury (>INR 1.5 Cr) & premium segments (INR 80 lakh – INR 1.5 Cr) outpaced the mid segment (INR 40 lakh – INR 80 lakh) supply for the first time – 28% share each vs mid segment’s 26% supply share; affordable supply at 19%
• Available inventory in top 7 cities sees 1% quarterly decline & 6% yearly fall despite addition of new supply; NCR witnessed highest yearly decline of 22%
• Avg.  property prices in top 7 cities altogether see 7% quarterly rise but a significant 25% yearly rise – NCR records highest 10% quarterly jump, followed by Hyderabad with 9% increase & Bengaluru with 8% jump

The bull run in residential sales across the top 7 cities tamed down marginally in the second quarter of 2024, to the backdrop of increasing property prices and a high base record of the previous quarter (Q1 2024). Latest ANAROCK Research data reveals 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.

The two western cities – 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. NCR is the only city to see a quarterly rise (of 6%) in housing sales in the quarter against Q1 2024.

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.

Anuj Puri, Chairman – ANAROCK Group, says, “The quarterly decline seen in housing sales is essentially 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.”

Data indicates that average residential prices have seen a quarterly jump of 7% while annual rise of a significant 25% in the top 7 cities.

“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.”

New Launch Overview

The top 7 cities recorded approx. 1,17,170 new units launched in Q2 2024, against approx. 1,10,870 units in Q1 2024 – increasing by 6% over the previous quarter. The key cities contributing to new launches in Q2 2024 were MMR (Mumbai Metropolitan Region), NCR, Pune, and Bengaluru, which together accounted for 82% of the supply addition.

• MMR saw approx. 44,120 units launched in Q2 2024 – increasing by 31% over Q1 2024 and over 2% on yearly basis. More than 64% new supply was added in the sub-INR 80 lakh budget segment.
• Pune added new supply of approx. 18,920 units in Q2 2024 compared to approx. 18,770 units in Q1 2024 – an increase of 1%. On a yearly basis, the city recorded a 11% decline in new supply. Over 73% of the new supply in Q2 2024 was added in the mid and premium segments (units priced between INR 40 lakh to INR 1.5 Cr.)
• Hyderabad added approx. 13,750 units in Q2 2024, a quarterly decline of 40% but a 31% rise against the corresponding period in2023. Over 69% of the new supply in Q2 2024 was added in the mid and premium price segments.
• Bengaluru added approx. 16,020 units in Q2 2024, declining quarterly by 3%. On a yearly basis, there was 40% rise. Approx. 83% of the new supply was added in the premium and luxury segments (INR 80 Lakh onwards) combined.
• NCR saw a whopping 134% increase in new launches against Q1 2024, with approx. 17,030 units launched in Q2 2024. A whopping 82% of the new launches in second quarter this year were in the luxury segments priced >INR 1.5 Cr.
• Chennai added approx. 5,180 units in Q2 2024, a quarterly decline of 29% against Q1 2024 and a yearly increase of 3% over Q2 2023. Over 93% was added in the mid and premium segments.
• Kolkata added approx. 2,150 units in Q2 2024, a decrease of 50% over Q1 2024 and 13% drop against Q2 2023. Approx. 64% new supply was added in the mid segment priced between INR 40 lakh – INR 80 lakh.

Source: ANAROCK Research

Overall Sales Overview

Approx. 1,20,340 units were sold in Q2 2024 across the top 7 cities – a quarterly decline of 8% over Q1 2024. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 92% sales in the quarter. On a yearly basis, the top 7 cities recorded a 5% increase in housing sales with approx. 1,15,090 units sold back in Q2 2023.

• NCR is the only city to see quarterly growth (of 6%) in housing sales among the top 7 cities – from approx. 15,650 units in Q1 2024 to approx. 16,550 units in Q2 2024.
• MMR witnessed the maximum sales at approx. 41,540 units in Q2 2024, against approx. 42,920 units in Q1 2024 – declining by 3%.
• Pune witnessed housing sales of 21,145 units in Q2 2024, decreasing by 8% over Q1 2024.
• Bengaluru toosaw housing sales decrease by 8% in Q2 2024 against Q1 2024, with approx. 16,360 units sold in the second quarter this year.
• Chennai saw approx. 5,020 units sold in Q2 2024 – decreasing by 9% against Q1 2024.
• Hyderabad recorded sales of approx. 15,085 units in Q2 2024, a drop of 23% over Q1 2024.
• Kolkata saw housing sales decrease by 18% in the quarter against preceding quarter (Q1 2024); approx. 4,640 units were sold in Q2 2024.

Source: ANAROCK Research

Price Movement

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. NCR recorded the highest quarterly jump of 10% with the average price at INR 6,800 per sq. ft. as of Q2 2024-end.

On a yearly basis, the top 7 cities recorded a significant average price rise of between 13 – 39%. Hyderabad recorded the highest yearly jump of 39% in average residential prices in Q2 2024 against Q2 2023.

Available Inventory

Amid robust sales, available inventory across the top 7 cities reduced by 1% on a quarterly basis to approx. 5.78 lakh units as of Q2 2024-end. On a yearly basis, there has been a 6% decline in the available inventory across the top 7 cities. NCR witnessed the highest yearly decline of 22% – from approx. 1.11 lakh units by Q2 2023-end to approx. 86,900 units as of Q2 2024-end. This is a significant reduction in this top realty hotspot in the country which reeled under excessive unsold stock in previous years.

Also Read: New-age buildings dominate India’s office market, accounting for 84% of total net absorption since 2021

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●           Aggregate residential demand increased 6.9% QoQ, supply increased 0.9% QoQ and prices increased 2.9% QoQ across the 13 cities

In 2023, residential prices increased consistently, making relatively affordable under-construction properties more attractive for investment and home ownership, reveals the latest PropIndex report by Magicbricks, India’s leading real estate platform.

The report underscores a notable surge in demand for under-construction properties, increasing 7.8% QoQ between January and March 2024. As a result, prices experienced a corresponding uptick, growing 1.7% QoQ and a significant 30.6% YoY. This momentum follows a previous increase of 6.32% QoQ recorded between October and December 2023, indicating a sustained positive trend in the market.

Cities such as Noida (7.1% QoQ), Greater Noida (6.1% QoQ), Bengaluru and Mumbai (5.7% QoQ each) witnessed the most substantial price increments in under-construction properties.

Explaining the trends, Abhishek Bhadra, Head of Research, Magicbricks shared “Historically, homebuyers have often favored completed projects over new developments. But against the backdrop of increasing residential prices in 2023, there emerged a discernible shift in preference towards relatively more affordable under-construction properties. Consequently, prices of under-construction properties are on the rise as well. In response to this evolving demand, we have observed that developers are swiftly expediting the completion of under-construction projects and launching new ones.“

Furthermore, the report shed light on a notable trend towards 2BHK units, also likely influenced by the increasing residential prices across various cities. According to Magicbricks, the demand share of 2BHK units increased from 32% (between October and December 2023) to 42% (between January and March 2024).

This trend was particularly pronounced in cities such as Bengaluru (rising from 29% to 45%), Noida (increasing from 11% to 33%), and Navi Mumbai (from 18% to 54%) where demand for 2BHKs grew considerably during these respective periods.

“While we anticipate residential demand to continue increasing, albeit at a slower pace, there are promising signs indicating an increase in residential supply in the upcoming quarters. Consequently, we expect prices to stabilize, showcasing the market’s resilience in the face of evolving dynamics,” concluded Abhishek Bhadra.

The report highlights a continued uptrend in aggregate demand across the top 13 cities between January and March 2024, registering a robust growth of 6.9% QoQ. Moreover, after a period of relatively subdued supply, there has been a modest 0.9% QoQ increase this quarter. Despite this, the demand continues to outstrip supply, resulting in a 2.9% QoQ increase in residential prices across these 13 cities. Noida (7.4% QoQ), Greater Noida (7.2% QoQ), and Chennai (5.5% QoQ) recorded the highest appreciation in property prices.

Also Read: Housing prices surged ~20% from 2021 to 2023

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As much as 60%of all registrations in August 2022 were in the price band of over INR 1 Cr while in terms of apartment size homes between the size of 500-1000 sq ft were the most preferred in this month. Out of all the properties registered in August 2022, 85% were residential deals as compared to 86% in the previous month,while commercial property deals contribution has gone down from 10% last month to9%. Industrial property deals contributed to 1% while land deals registered stayed under 1%. Other forms of property deals contributed to 4% of the total deals registered in August 2022.

Here are a few reactions from the realty experts:
Rajan Bandelkar – President, NAREDCO National“We have seen a robust property buying in the past few months as the extent of price rise passed on to consumers has been lower as compared to the increase in the input costs. It is very much likely that the Indian central bank will further hike interest rates to bring back inflation under control. As a result of that we have already started witnessing  short-term repercussions on the overall housing demand. With the onset of the festive season, we urge the government to offer concession in stamp duty fees that it offered at the time of the pandemic so as to further encourage homebuyers’ interest in property buying. On behalf of NAREDCO, we are planning a biggest property expo at the end of the month at JIO World Convention Centre, BKC which will promise more property registrations in the upcoming festive season.” 

Pritam Chivukula, Co-founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI“Mumbai has yet again witnessed higher property registrations in August 2022 amidst the rise in interest rates and sky-rocketing property prices, with the demand continuing to be strong. The low interest rates have been the biggest factor in the resurgence for real estate demand in the last two years. Therefore the sharp acceleration of interest rates consecutively for the third time in a short period may have a short-term effect on the sentiment of homebuyers. We request the State Government to step-in and lighten the homebuyer’s load by reducing stamp duty ahead of the festive season.”

Ram Naik, Director, The Guardians Real Estate Advisory“As compared to last year, August 2022 has witnessed strong property registration numbers which reiterates the fact that there is still strong demand for homes. Although the recent consecutive rate hikes by the RBI have temporarily limited the growth momentum of the real estate sector but with the festive season about to begin, we are optimistic that it would lead to a robust demand and a positive home-buying sentiment, in the current term. Also, the lucrative festive offers accompanied by flexible payment options provided by the developers and better consumer awareness should continue to propel the growth of the sector in the upcoming festive season.”

Jitesh Lalwani, President, Homesync Real Estate Advisory“Mumbai in a row continued to witness a robust demand and an impressive ascent in property registrations in the month of August 2022 despite the rise in property prices and home loan interest rates. With the onset of the festive season, it is evident that consumers will be further drawn towards making home purchases backed by several lucrative offers. We believe the sales momentum will continue for the coming quarters and reputed developers with a good track record will continue to dominate the market.”

Also Read: Mumbai in August 2022 sells 8.4k homes best in a decade for the month of August

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By Varun Singh

Mumbai has managed to sell more than 3.7k homes in the first 10 days of the first month of the financial year 2022-23.

This is against all the predictions that starting from April there may be a dip in home sales. Because going by this average the figure by the end of the month would be close to 10k sales.

April month has seen a hike in stamp duty charges, the ready reckoner rates in most part of the state has gone up. There was a fear that this will impact the home sales.

However, data collected from the Department of Stamps and Registration office show that in April 2022, in the first 10 days, a total of 3779 sales were registered generating a revenue of ₹236 crore for the state government.

This is almost on the lines of what the best home sales month in the financial year of 2021-22 saw.

Lets have a look at the last year’s figures of all the 12 months. Let’s start with April 2021, in the first month of FY-2021-22 a total of 10,135 sales were registered generating ₹514 crore.

In May the impact of COVID 19 second wave was clearly visible where only 5,360 sales were registered generating only ₹268 crore.

June month saw a total of 7,856 home sales registration with a revenue generation for the stamp duty office worth ₹420 crore.

July was better, where 9,822 sales got registered the revenue generated was ₹566 crore.

August, September, and October saw 6,784, 7,804, and 8,576 sale registration while revenue generated was ₹420 crore, ₹529 crore, ₹550 crore respectively.

November saw a dip compared to October where 7,582 sales were registered in the month generating a revenue of ₹549 crore.

December month generated a revenue of ₹758 crore via 9,681 sales.

January saw 8,155 sales generating a revenue of ₹478 crore.

February till date has performed the best when it comes to sales registration in the entire FY 21-22. A total of 10,379 sales were registered in February generating a revenue of ₹614 crore.

By the end of the financial year that is March, Mumbai witnessed over 16,726 which generated over ₹1,160 crore.

This is the highest revenue generated in the entire financial year 2021-22.

Going by this logic, it is expected that April 2022, will be close to the figures that of February, which actually performed pretty well.

Also Read: Will Real Estate continue to offer a profitable Return on Investment

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By Varun Singh

MMR saw approx. 16,510 units launched during this quarter – a yearly increase of approx. 52% against Q3 2020. Interestingly, the affordable and mid- segments added over 65% of the new supply.

In Q3 2021, housing sales surged 113% y-o-y across the top 7 cities – from approx. 29,520 units in Q3 2020 to nearly 62,800 units in Q3 2021. MMR accounted for 33% of the total sales, followed by NCR with a 16% share.

Meanwhile, new launches in the top 7 cities rose by 98% yearly – from approx. 32,530 units in Q3 2020 to approx. 64,560 units in Q3 2021. While MMR continued to see the highest number of new launches (of approx. 16,510 units) in the quarter, Hyderabad was close behind with a new supply infusion of approx. 14,690 units.

Interestingly, the mid-segment (homes priced INR 40-80 lakh) and premium homes (priced b/w INR 80 lakh to INR 1.5 Cr) continue to dominate new supply with 41% and 25% shares, respectively. The affordable housing segment (units priced <INR 40 lakh) saw its supply share reduce to 24% in the quarter.

Average property prices saw a 3% yearly increase across the top 7 cities – to INR 5,760 per sq. ft. in Q3 2021 from INR 5,600 per sq. ft. in Q3 2020. Bengaluru leads with an approx. 4% annual rise – from INR 4,975 per sq. ft. in Q3 2020 to approx. INR 5,150 per sq. ft. in Q3 2021.

“IT/ITeS continues to drive the bulk of housing demand in the top 7 cities,” says Anuj Puri, Chairman – ANAROCK Group. “In Q3 2021, significantly improved job security and robust hiring in the IT/ITeS and financial sectors piggybacked on record-low home loan rates and growing homeownership sentiment. The ongoing WFH culture continues to influence residential sentiment on two major fronts – overall housing demand and unit sizes. The fast-paced vaccination drive is an added sentiment booster, especially in terms of increased site visits.”

“With new launches increasing by 98% and housing sales skyrocketing by 113%, Q3 2021 stands in stark contrast to this period last year,” says Puri. “MMR and NCR together accounted for nearly 50% of the overall housing sales in the quarter,” he said.

In previous periods of unprecedented demand, housing prices invariably rose steeply. In the current pandemic period, they have remained more or less stable, and developers were actively sweetening the deal with added offers and discounts in this period, effectively keeping a lid on the overall cost of property acquisition. MMR distinguished itself with an impressive 8% y-o-y reduction in its unsold stock. Unsold inventory in the region stood at 1.92 lakh units as of Q3 2021 end. NCR saw a 3% yearly decline.

Q3 2021 Overall Sales Overview:

Residential sales stood at approx. 62,800 units in Q3 2021 across the top 7 cities, against approx. 29,520 units in Q3 2020. The y-o-y increase was 113%, and the q-o-q sales surge a stellar 156%. NCR, MMR, Bengaluru, and Pune together accounted for 79% of the sales in the quarter.

• Hyderabad recorded sales of approx. 6,735 units in Q3 2021 – a massive spike of over 300% over Q3 2020, mainly due to a continuous flow of new supply over the last 4-5 quarters.
• MMR and Pune also saw a significant sales surge in the quarter compared to other top cities – by 128% (approx. 20,965 units) in MMR and 100% (approx. 9,705 units) in Pune.
• NCR and Bengaluru saw sales in Q3 2021 increase by approx. 97% (approx. 10,220 units) and 58% (approx. 8,550 units) respectively against Q3 2020.
• Chennai saw approx. 3,405 units sold in Q3 2021 – a significant increase of 113% over Q3 2020.
• Kolkata saw 2X sales jump in Q3 2021 against Q3 2020, with approx. 3,220 units sold in this quarter.

Q3 2021 New Launch Overview:

The top 7 cities saw approx. 64,560 new units launched in Q3 2021, against approx. 32,530 units in Q3 2020 – a significant y-o-y increase of 98%. Approx. 66% of this new supply was in the mid-range and premium segments (ticket sizes sub-INR 40 Lakh to INR 1.5 Cr) during the quarter.

The key cities contributing to new unit launches in Q3 2021 were MMR, Hyderabad, Pune, and NCR, which cumulatively accounted for 77% of the supply addition.

• MMR saw approx. 16,510 units launched during this quarter – a yearly increase of approx. 52% against Q3 2020. Interestingly, the affordable and mid- segments added over 65% of the new supply.
• Hyderabad added approx. 14,690 units in Q3 2021 – a yearly increase of 67% over Q3 2020. Over 78% of the new supply was added in the sub-INR 40 lakh to INR 1.5 Cr price bracket.
• Pune added new supply of approx. 10,290 units in Q3 2021 compared to approx. 4,180 units in Q3 2020 – a massive increase of 146%. Approx. 54% of this new supply was in the mid-segment.
• NCR added approx. 8,410 units in Q3 2021 – a yearly rise of 19%. Approx. 78% of the new supply was added in sub-INR 40 lakh to INR 1.5 Cr price bracket.
• Bengaluru saw new launches increase by 32% from the previous year Q3 2020 with approx. 7,680 units launched in Q3 2021.
• Chennai added approx. 2,980 units in Q3 2021 – a y-o-y increase of 48% over Q3 2020.
• Kolkata added approx. 4,000 units in Q3 2021 – an increase of 196% over Q3 2020. Over 58% of the new supply was in the affordable segment.

Price Movements:

Residential property prices across the top cities increased by 1-4% in Q3 2021 compared to Q3 2020, mainly due to an increase in construction cost. Data reveals that the top 7 cities collectively saw average property prices increase by 3% annually – to INR 5,760 per sq. ft. in Q3 2021 from INR 5,600 per sq. ft. in Q3 2020. Bengaluru saw the highest 4% annual rise to INR 5,150 per sq. ft.

Also Read: MMR is behind these Cities in Office Leasing

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