Residential Real Estate Stabilizes in Q3 2024, Sales Dip 11% Across Top Cities: ANAROCK Data

Mumbai / September 26, 2024: After a 2-year bull run, residential real estate activity across the top cities stabilized in Q3 2024 – typically a slow quarter due to the monsoon and perceived inauspiciousness. Latest ANAROCK data reveals that housing sales across the top 7 cities declined by 11% annually, clocking in at approx. 1,07,060 units in Q3 2024 against approx. 1,20,290 units in Q3 2023. However, sales continued to outstrip new supply in Q3 2024, reflecting continued health in the market, ANAROCK Group said in a statement.

Anuj Puri, Chairman – ANAROCK Group, said, “Among the top 7 cities, MMR recorded the highest sales of approximately 36,190 units, followed by Pune with approximately. 19,050 units. Cumulatively, the two western cities accounted for 52% of the total sales across the top 7 cities in Q3 2024. All the top cities individually recorded a dip in housing sales. The top 7 cities also witnessed a drop in new housing supply, with approximately. 93,750 units launched in Q3 2024 against 1,16,220 units in the corresponding period in 2023 – a 19% annual drop. Nevertheless, the fact that sales remained higher than launches indicates that the demand-supply equation remains robust.”

City-wise, MMR topped new supply with approx. 29,615 units launched in the quarter, followed by Bengaluru with approx. 15,915 units. Interestingly, while most cities saw new supply decline annually, NCR and Chennai saw whopping 53% and 51% increases, respectively.

In terms of budget segments, the Rs 1.5 Cr luxury housing segment witnessed the highest new supply of 33%, followed by the premium (INR 80 lakh – INR 1.5 Cr) segment with a 30% share. The mid segment (Rs 40– 80 lakh) contributed a 23% share of the total new supply during the quarter, while the affordable segment’s share fell further to just 13% – the lowest in a quarter.”

Available housing inventory saw an 8% yearly decline across the top 7 cities amid strong sales – from over 6.10 lakh units as on Q3 2023-end to over 5.64 lakh units by Q3 2024-end. The inventory decline is largely attributable to sales exceeding new launches in the quarter.

Average residential prices in the top 7 cities collectively saw double-digit growth of 23% in Q3 2024 against Q3 2023. Hyderabad recorded the highest 32% annual growth, followed by Bengaluru and NCR with 29% increases each. 

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“Housing sales in the third quarter tapered down amid high prices and the monsoon season,” Puri said. “As always in this period, the ‘shraad’ period also suppressed demand to an extent as many Indians defer home buying in this period. Overall, the housing market is stabilizing after creating a new peak in Q1 2024,” he added.

Developers have several projects lined up during the festive quarter (Oct.-Dec.) during which the market is expected to see an uptick in demand.

“That said, growth in the upcoming quarters may not be as steep as seen in the last 1-2 years,” Puri said Puri. “Residential prices too seem to have peaked out and are now gradually stabilizing across cities. Developers are likely to roll out several offers and discounts during the upcoming festive quarter to attract buyers,” he added.