Delhi NCR emerged as the only region to show positive YoY growth in new home sales. It recorded 9,808 units sold, up significantly from 6,528 units in Q4 2023.
Housing sales in India’s top eight cities dropped by 26% year-on-year (YoY) in the October-December 2024 quarter compared to the same period last year, according to a report by PropTiger.com. However, sales witnessed a 10% quarter-on-quarter (QoQ) growth due to the festive season. The report analyzed data from Delhi NCR, Mumbai Metropolitan Region (MMR), Pune, Kolkata, Ahmedabad, Hyderabad, Bengaluru, and Chennai.
Key Trends in Housing Sales
Decline in YoY Sales Across Most Cities
- MMR: Retained the top position with 33,617 units sold, but this was a 31% YoY decline.
- Pune: Sold 18,240 units, down 31% YoY.
- Bengaluru: Registered 13,236 units sold, marking a 23% YoY decline.
- Hyderabad: Sold 13,179 units, down by a sharp 36% YoY.
- Ahmedabad: Recorded 10,170 units sold, a 34% YoY drop.
- Kolkata: Sold 3,715 units, declining 22% YoY.
- Chennai: Sold 4,073 units, witnessing a smaller decline of 5% YoY.
Delhi NCR Shines Amid Declines
Delhi NCR emerged as the only region to show positive YoY growth in new home sales. It recorded 9,808 units sold, up significantly from 6,528 units in Q4 2023.
New Launches: A Mixed Bag
New launches dropped by 33% YoY across India’s top cities. This decline was influenced by state elections and a slowdown in project approvals.
- Delhi NCR: Led the way with a 133% YoY surge, launching 10,048 units.
- Bengaluru: Recorded 15,157 units launched, a 20% YoY increase.
- Chennai: Saw a 34% rise, with 4,005 units launched.
- Hyderabad, Ahmedabad, and Kolkata: Witnessed sharp declines in launches, with Hyderabad dropping 66% YoY.
Why the Decline?
Expert Insights
According to Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com, several factors contributed to the drop in sales and new launches:
- Global Economic Uncertainty: Developers and buyers adopted a cautious approach.
- State Elections: Elections in Maharashtra and Haryana slowed down project approvals.
- Property Prices: Elevated property prices deterred buyers.
Outlook for 2025
With interest rates remaining high and economic growth slowing, the housing market is expected to remain cautious in upcoming quarters. While Delhi NCR has shown resilience, other regions may take time to recover.
Conclusion
The Q4 2024 real estate market reflects a mixed sentiment, with YoY declines offset by festival-driven QoQ gains. Developers and buyers are likely to wait for economic stability and policy clarity in 2025. For now, Delhi NCR remains the bright spot in an otherwise subdued housing market.
