The residential housing market in India’s top seven cities witnessed a slight deceleration in the second quarter of 2024, following an unprecedented high in the first quarter. According to the latest data from ANAROCK Research, housing sales in Q2 2024 dropped by 8 per cent quarter-on-quarter (Q-o-Q) to approximately 1.20 lakh units, down from the all-time high of 1.30 lakh units in Q1 2024. However, on a year-on-year (Y-o-Y) basis, there was a 5 per cent increase in sales.
Among the top seven cities, the National Capital Region (NCR) stood out with a 6 per cent rise in quarterly sales, reaching approximately 16,550 units in Q2 2024 compared to 15,650 units in Q1 2024. On an annual basis, NCR saw a modest 1 per cent growth. The Mumbai Metropolitan Region (MMR) and Pune accounted for 52 per cent of total sales, with MMR selling 41,540 units and Pune 21,145 units.
New residential launches maintained their upward momentum, showing a 6 per cent Q-o-Q growth from approximately 1.11 lakh units in Q1 2024 to around 1.17 lakh units in Q2 2024, representing a 14 per cent Y-o-Y increase. MMR and Pune led the surge in new supply, contributing 44,120 units and 18,920 units, respectively, which together made up 54 per cent of the total new launches. NCR recorded the highest quarterly rise of 134 per cent in new launches.
Anuj Puri, Chairman of ANAROCK Group, remarked, “The quarterly decline in housing sales is largely attributed to the high base effect of the previous quarter and significant property price hikes over the past year. Many investors have decided to pause amid the steep price increases.”
Average property prices across the top seven cities saw a 7 per cent quarterly rise and a substantial 25 per cent annual increase. NCR experienced the highest quarterly price increase at 10 per cent, followed by Hyderabad with 9 per cent, and Bengaluru with 8 per cent.
New Launch Overview
In Q2 2024, the top seven cities recorded approximately 1.17 lakh new units launched, a 6 per cent increase from Q1 2024. MMR saw the highest number of new launches at approximately 44,120 units, a 31 per cent Q-o-Q increase. Pune followed with 18,920 units, a 1 per cent increase. Hyderabad experienced a 40 per cent Q-o-Q decline but a 31 per cent Y-o-Y rise in new supply.
NCR's new launches soared by 134 per cent Q-o-Q, with approximately 17,030 units launched in Q2 2024. Chennai added around 5,180 units, a 29 per cent Q-o-Q decline but a 3 per cent Y-o-Y increase. Kolkata recorded 2,150 units, a 50 per cent Q-o-Q drop and a 13 per cent Y-o-Y decrease.
Overall Sales Overview
Q2 2024 saw approximately 1.20 lakh units sold across the top seven cities, an 8 per cent Q-o-Q decline. On a Y-o-Y basis, there was a 5 per cent increase. NCR was the only city with Q-o-Q growth, rising by 6 per cent. MMR recorded the highest sales with 41,540 units, although this was a 3 per cent Q-o-Q decline. Pune sold 21,145 units, an 8 per cent Q-o-Q decrease, while Bengaluru's sales also fell by 8 per cent.
Price Movement
Average residential property prices in the top seven cities increased by 4-10 per cent Q-o-Q in Q2 2024. NCR recorded the highest Q-o-Q jump at 10 per cent, with the average price at INR 6,800 per sq. ft. Hyderabad saw the highest Y-o-Y increase at 39 per cent.
Available Inventory
Despite new supply additions, the available inventory in the top seven cities decreased by 1 per cent Q-o-Q and 6 per cent Y-o-Y, with NCR experiencing the highest annual decline of 22 per cent. This reduction is significant for NCR, which previously struggled with high levels of unsold stock.
Average property prices across the top seven cities increased by 7 per cent Q-o-Q, with NCR showing the highest increase at 10 per cent. Available inventory saw a 1 per cent Q-o-Q decline, indicating sustained demand despite new supply additions.
Overall, while the housing market in the top seven cities showed signs of tapering off in Q2 2024, the long-term trend remains positive with sustained annual growth and robust new launches.
