Housing sales down by 8% in Q2 2024 compared to the previous quarter across top 7 cities due to rise in property prices
On a yearly basis, there has been a 5% rise in housing sales across top 7 cities; On a quarter-on-quarter basis, only Delhi-NCR has seen an increase in sales
The bull run in residential sales across the top 7 cities tamed down marginally in the second quarter of 2024, on account of increasing property prices and a high base record of the previous quarter (Q1 2024). Housing sales witnessed a quarterly drop of 8% and stood at approximately 1.20 lakh units in Q2 2024, against approximately 1.30 lakh units sold in Q1 2024. However, on a yearly basis, there has been a 5% rise in residential sales, a report by Anarock Research showed.
In April-June 2024, housing sales across seven major cities were estimated at 1.20 lakh units, up 5% from 1.15 lakh units in the year-ago period, the report said.
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.
MMR witnessed the maximum sales at approximately 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.
Among top 7 cities, only NCR saw a 6% quarterly rise in sales with approximately 16,550 units in Q2 2024 (April-June) against 15,650 units in Q1 2024 (Jan-March).
Bengaluru too saw housing sales decrease by 8% in Q2 2024 against Q1 2024, with approximately 16,360 units sold in the second quarter this year. Chennai saw approximately 5,020 units sold in Q2 2024 - decreasing by 9% against Q1 2024.
Hyderabad recorded sales of approximately 15,085 units in Q2 2024, a drop of 23% over Q1 2024. Kolkata saw housing sales decrease by 18% in the quarter against the preceding quarter (Q1 2024); approximately 4,640 units were sold in Q2 2024.
New launches across cities increase by 6% q-o-q, NCR witnesses a 134% jump in new supply
New launches across the top 7 cities continued to break previous records with a 6% Q-o-Q rise – from approximately 1.10 lakh units in Q1 2024 to approximately 1.17 lakh units in Q2 2024, the report showed.
NCR saw a 134% increase in new launches against Q1 2024, with approximately 17,030 units launched in Q2 2024.
Vivek Singhal, CEO, Smartworld Developers said that Gurugram has played a key role in the surge of launches in Delhi NCR. Its proximity to major commercial centres has made it a premier choice for homebuyers.
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.
MMR saw approximately 44,120 units launched in Q2 2024 – increasing by 31% over Q1 2024 and over 2% on a yearly basis. More than 64% new supply was added in the sub- ₹80 lakh budget segment. Pune added a new supply of approximately 18,920 units in Q2 2024 compared to approximately 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 ₹40 lakh to ₹1.5 crore), the report showed.
Hyderabad added approximately 13,750 units in Q2 2024, a quarterly decline of 40% but a 31% rise against the corresponding period in 2023. Over 69% of the new supply in Q2 2024 was added in the mid and premium price segments.
Bengaluru added approximately 16,020 units in Q2 2024, declining quarterly by 3%. On a yearly basis, there was a 40% rise. Approximately 83% of the new supply was added in the premium and luxury segments ( ₹80 lakh onwards) combined.
Also Read: New housing supply expected to witness 13% drop; sales down 2% y-o-y across top cities
“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,” said Anuj Puri, chairman – ANAROCK Group.
Property prices increase by 7% q-o-q and 25% y-o-y
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 recorded the highest quarterly jump of 10% with the average price at ₹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%.
Also Read: 74,486 housing units sold in Q1 2024; share of affordable housing sales decline
Hyderabad recorded the highest yearly jump of 39% in average residential prices in Q2 2024 against Q2 2023.
Available inventory across cities down; NCR witnesses maximum yearly decline of 22%
Available inventory across the top 7 cities reduced by 1% on a quarterly basis to approximately 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 approximately 1.11 lakh units by Q2 2023-end to approximately 86,900 units as of Q2 2024-end.
Also Read: Luxury housing sales record 75% growth in 2023 on the back of robust demand: Report