Housing Sales In Top 7 Cities Surge by 14 % In Q1 2024: Anarock Report

In a major development for the Indian real estate sector, housing sales across the top 7 cities witnessed a robust 14 per cent year-on-year rise in the first quarter of 2024, according to data released by ANAROCK. The quarter marked a milestone with approximately 1.30 lakh units sold, surpassing previous records and indicating a significant uptick in demand compared to Q1 2023 when around 1.14 lakh units were sold.

Key highlights from the report include the regional sales distribution, where metropolitan regions such as Mumbai (MMR) and Pune emerged as dominant players, collectively accounting for over 51 per cent of total transactions. Specifically, MMR showcased a remarkable 24 per cent yearly surge in sales, underscoring its robust real estate market dynamics. Similarly, Pune witnessed a commendable 15 per cent rise in housing sales, reflecting sustained demand and investor interest in the region's property sector.

Anuj Puri, Chairman Anarock Group, says "MMR and Pune accounted for over 51 per cent  of the total sales in the top 7 cities, with MMR recording a 24 per cent yearly jump and Pune witnessing an over 15 per cent yearly rise. New launches across the top 7 cities continued above the one lakh mark but witnessed a mere 1 per cent yearly rise – from 1,09,570 units in Q1 2023 to over 1,10,865 units in Q1 2024."

While the sales market flourished, new launches saw a modest 1 per cent year-on-year increase, with approximately 1.11 lakh units introduced in Q1 2024 compared to 1.10 lakh units in the same period of the previous year. MMR and Hyderabad emerged as major contributors to new launches, accounting for 51 per cent of total launches across the top cities.

Segment-wise Supply

Mid-segment homes priced between Rs 40-80 lakh continued to dominate new supply, capturing a 33 per cent share. Luxury properties priced above Rs 1.5 crore constituted 25 per cent of the supply, followed closely by premium segment properties valued between Rs 80 lakh and Rs 1.5 crore, making up 24 per cent of the market. Affordable segment properties, priced below Rs 40 lakh, held an 18 per cent share.

Inventory Dynamics

Despite a surge in new launches, available inventory in the top 7 cities decreased by 7 per cent year-on-year, amounting to approximately 5.81 lakh units by the end of Q1 2024. Notably, the National Capital Region (NCR) experienced the most significant reduction, witnessing a staggering 27 per cent decline in available inventory compared to the previous year.

Price Movements

Average residential property prices across the top 7 cities witnessed a notable increase, with Hyderabad and Bengaluru recording the highest annual hikes of 31 per cent and 24 per cent, respectively. This surge can be attributed to the rise in prices of construction raw materials and increased demand.

The surge in housing sales, coupled with stable demand and significant price appreciation, paints a promising picture for the Indian real estate market in Q1 2024. However, the decline in available inventory, particularly in regions like NCR, poses challenges and underscores the need for strategic planning and policy interventions to sustain the sector's growth trajectory. With India's overall economic outlook remaining positive, the real estate market is poised for further expansion in the coming quarters.