Housing Sales Drop 11% In Jul-Sep As Average Prices Surge 23% In Top 7 Cities: Report

According to the report, developers have several projects planned for the festive quarter (October-December), during which a rise in demand is anticipated

Housing sales in seven major cities dropped by 11 per cent from July to September, accounting for 1.07 lakh units compared to 120,290 units during the same period last year. This decline is attributed to fewer new launches and a significant annual increase of 23 per cent in average prices, according to a report released on Thursday by real estate consultant Anarock.

Anarock Chairman Anuj Puri said, "All the top cities individually recorded a dip in housing sales." The top seven cities saw a 19 per cent decrease in new housing supply, with 93,750 units launched from July to September 2024, compared to 116,220 units during the same period in 2023.

"Nevertheless, the fact that sales remained higher than launches indicates that the demand-supply equation remains robust," Puri noted.

He added that housing sales in the third quarter declined due to high prices and the monsoon season. "As always in this period, the 'shraad' period also suppressed demand to an extent as many Indians defer home buying in this period," he explained. Overall, Puri indicated that the housing market is stabilising after reaching a new peak in January-March 2024.

According to the report, developers have several projects planned for the festive quarter (October-December), during which a rise in demand is anticipated. However, Puri cautioned that sales growth in the upcoming quarters may not be as pronounced as in the past one to two years. "Residential prices too seem to have peaked out and are now gradually stabilising across cities. Developers are likely to roll out several offers and discounts during the upcoming festive quarter to attract buyers," he said.

Data revealed that the Mumbai Metropolitan Region (MMR) recorded the highest sales among the top seven cities in the July-September quarter, with 36,190 units sold—a 6 per cent drop from 38,505 units a year earlier. Pune experienced a 17 per cent decline, with sales dropping to 19,050 units from 22,885 units during the same period. 

In Delhi-NCR, housing sales fell 2 per cent to 15,570 units from 15,865 units, while Bengaluru saw an 8 per cent decrease to 15,025 units from 16,395 units. Hyderabad recorded sales of 12,735 units, representing a 22 per cent decline from 16,375 units in the third quarter of 2023. Kolkata's housing sales dropped by 25 per cent to 3,980 units from 5,320 units, and Chennai experienced a 9 per cent decline, with sales falling to 4,510 units from 4,945 units year-over-year.

The report further states, “Due to escalating input costs as well as significant sales growth, average residential property prices across the top 7 cities collectively rose by 23 per cent annually - from Rs 6,800 per sq. ft. in Q3 2023 to Rs 8,390 per sq. ft. in Q3 2024.” Among these cities, Hyderabad saw the highest surge in average prices, jumping by 32 per cent, reveals the report.