Hit hard by elevated property prices and state elections in some states, housing sales dipped across India’s top cities in Q4 of 2024; however, one city could still defy the trend. Was it Mumbai, Ahmedabad, Pune, Delhi-NCR, or any other city?
The latest report by PropTiger.com states that housing sales in India’s 8 prime residential markets dipped 26% in the October-December period of 2024 compared to the same quarter last year. The report, titled ‘Real Insight Residential: Annual Roundup 2024’, says the drop in sales numbers could primarily be attributed to state elections in Maharashtra and Haryana, which make up for 3 of the 8 cities covered in the analysis and to elevated property prices. Barring NCR, data show, home sales dipped across cities on a year-on-year basis.
The impact of elections was also visible on fresh supply — launches in Q42024 declined 33% YoY as the pace of project approvals slowed due to state polls. Launch numbers during the last quarter of 2024 dropped in 5 of the 8 cities covered in the report.
Also Read: Low Demand, High Prices: Should you postpone real estate investment for now?
Commenting on the report, Dhruv Agarwala, Group CEO, Housing.com & Proptiger.com, said, “While the October-December festive period saw a QoQ increase in sales as expected, there was a YoY decline in both sales and new launches across most regions. Factors such as global economic uncertainties, major state elections, and property price increase across the country led to a wait-and-watch approach by both developers and buyers.”
“While Delhi-NCR stood out as the only market to register YoY growth in sales, other regions, including key markets like MMR, Pune, and Bengaluru, experienced notable declines in home sales. Looking ahead, with no immediate signs of interest rate cuts and with economic growth slowing down, the market is expected to remain cautious in the coming quarters,” Agarwala added.
New Home Sales:
The Delhi-NCR market stood out as the only region among the top eight cities to register positive growth in new home sales, with 9,808 units sold in Q4 (Oct-Dec 2024), a significant rise from 6,528 units in the same period last year. MMR retained its position as the market leader with 33,617 units sold, though it witnessed a 31% YoY decline from 48,553 units.
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