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Residential demand and supply, in the top nine cities in India, fell in the third quarter of 2024, both sequentially and annually, according to data from proptech firm PropEquity, which is listed on the NSE. The sales however outstripped launches.
On a pan-India basis new launches (supply) fell 15 per cent sequentially and 11 per cent on year to below 1 lakh units, while absorption (sales) fell 13 per cent sequentially and 18 per cent on year, at around a little over 1 lakh units.
New launches were at 93,693 units and sales at 104393 units.
The data shows that launches have been decelerating over the past four quarters while sales have been falling over the last three quarters.
Among the cities and regions, the National Capital Region was the only one that bucked the nation-wide trend and saw launches rising 29 per cent on quarter and 221 per cent on year, while sales rose 3 per cent sequentially and 22 per cent annually. Mumbai and Thane showed a year-on-year rise in launches in the quarter, while Hyderabad showed a sequential rise. In Navi Mumbai, sales rose annually.
However Hyderabad saw the steepest annual fall in launches and sales.
Such marginal drops in any quarter should not be taken as symptomatic of any adverse trend, said Samir Jasuja, CEO & Founder, PropEquity, adding that demand continued robust.
Developers said the third quarter was traditionally a weak quarter because builders tended to delay their launches for the festive season and the last quarter of the year. Sunil Pareek, Executive Director, Assetz Property Group said the dip in sales and launches was primarily due to inventory constraints and not a result of reducing demand.
Post pandemic, the housing sector has been seeing a boom, fuelled partly due by the wealth made by Indians and NRIs in the stock markets, partly due to desire of home ownership that came up during Covid and also the reduction in stamp duties, premiums and interest rates that made home ownership more affordable.
The real estate sector in India is believed to be in the middle of a multi-year upcycle and the industry is expecting the boom to continue for the next several years.
- Also read: RMZ offers 0.3 million sqft of commercial space to Chevron Global Technology in Bengaluru
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