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Housing Sales Dip in India’s Major Cities

Residential property sales across India s eight major housing markets recorded a moderate decline during the July September quarter of 2024. According to a recent market analysis, housing sales dropped by around 5% year-on-year , reflecting changing market dynamics and rising property prices. During this period, approximately 96,544 housing units were sold , compared with 1,01,221 units sold in the same quarter of the previous year . The slowdown was mainly attributed to increasing property prices, which have made homes less affordable for many buyers across major urban markets. Sharp Decline in New Housing Launches While housing sales experienced a slight decline, the drop in new residential launches was much more significant. Developers introduced around 91,863 new housing units in Q3 2024 , compared with 1,23,080 units launched in the same quarter of 2023 , reflecting a 25% annual decline in new supply. This reduction in project launches suggests that many developers are adopting a cautious approach due to changing demand patterns and rising construction costs. Rising Property Prices Impact Demand The report highlighted that residential property prices have increased considerably in recent months. On average, prices across the major cities have risen by nearly 20% , affecting affordability for potential buyers. Because of these price increases, many buyers have postponed property purchases, which has contributed to the overall decline in sales. City-Wise Housing Sales Trends The housing market performance varied significantly across different cities. In Delhi NCR , housing sales increased 29% year-on-year , reaching about 10,098 units , making it the only region among the top markets to record strong growth. Mumbai remained the largest market in terms of volume but recorded a slight 1% decline in sales. Hyderabad saw a significant 19% drop in housing sales. Bengaluru experienced an 11% decrease in property sales. Ahmedabad recorded a 9% fall in sales during the same period. Sales also declined in Chennai , Kolkata , and Pune . These figures indicate that most major housing markets saw slower demand compared to the previous year. Decline in New Project Launches Across Cities Several cities also witnessed a significant reduction in new residential project launches. Hyderabad recorded one of the sharpest declines, with new launches dropping 58% year-on-year . Pune saw new supply fall by 36% . In Mumbai , project launches declined by about 13% . However, Delhi NCR stood out with strong developer activity, recording a 76% increase in new housing launches compared with the previous year. This growth reflects continued demand in the NCR region, particularly in cities such as Noida, Gurugram, and Greater Noida. Market Outlook Industry experts believe that the current slowdown may help stabilize the housing market after a period of rapid growth. Developers are gradually adjusting their project launch strategies to match evolving buyer demand. With the festive season approaching, real estate companies are expected to introduce promotional offers and new projects, which could boost housing demand in the coming months.