Housing Sales Decline in Major 9 Cities: Hyderabad and Chennai Face Double-Digit Dip

The Indian housing market experienced a notable decline in both sales and new supply during 2024. Sales of residential properties across nine major cities fell by 9% to 4,70,899 units compared to 5,14,820 units in 2023. New supply also dropped by 15% to 4,11,022 units due to subdued activity during the general elections and the monsoon season.

Despite these declines, the fundamentals of the real estate sector remain healthy, as the supply-to-absorption ratio in 2024 matches that of 2023. This suggests a balanced demand and supply scenario, reinforcing the sector’s long-term stability.

City-Wise Analysis of Housing Sales

1. Bengaluru
   Housing sales in Bengaluru dropped by 9% to 60,506 units from 66,600 units in 2023.
2. Chennai
   Chennai witnessed an 11% decline, with sales falling to 19,212 units from 21,515 units.
3. Hyderabad
   Hyderabad experienced the steepest decline of 25%, with sales reducing to 61,722 units from 82,350 units.
4. Kolkata
   Kolkata’s housing sales remained relatively stable, falling marginally by 1% to 18,595 units from 18,697 units.
5. Mumbai
   Mumbai saw a 6% drop in sales, with 50,140 units sold compared to 53,208 units the previous year.
6. Navi Mumbai
   In contrast, Navi Mumbai recorded a significant 16% growth, with sales rising to 33,870 units from 29,085 units.
7. Pune
   Pune witnessed a decline of 13%, with sales falling to 92,643 units from 1,06,351 units.
8. Thane
   Housing sales in Thane fell by 5%, registering 90,288 units compared to 95,336 units.
9. Delhi-NCR
   Delhi-NCR emerged as a positive outlier, recording a 5% increase in sales to 43,923 units from 41,678 units in 2023.

Factors Contributing to the Decline

The decline in housing sales and new supply during 2024 can be attributed to:

• High Base Effect: The real estate market peaked in 2023, making 2024 numbers appear comparatively lower.
• Election and Monsoon Impact: Two quarters of subdued activity during the general elections and monsoon season slowed down market dynamics.

Key Insights from the Data

• Resilient Fundamentals: The stable supply-to-absorption ratio indicates that the sector is not facing an oversupply situation and remains balanced.
• Regional Variations: While cities like Navi Mumbai and Delhi-NCR showed positive growth, Hyderabad and Pune saw significant declines, indicating regional differences in market performance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.