The Indian real estate market is experiencing notable fluctuations, with a significant decline in property buyers across major cities. A recent report by PropEquity, a prominent data analytics firm, reveals that transaction volumes have decreased by 9%, highlighting a downturn spurred by lower demand and new supply shortages. This article delves into the key findings of the report and assesses the implications for buyers and investors in 2024.
Decline in Residential Property Sales
According to the report, residential property sales in India’s top nine cities fell to 470,899 units in 2024, down from 514,820 units in 2023—a decrease of approximately 43,000 homes sold. This decline can be attributed to decreased market activity around the general elections and adverse weather conditions that affected two quarters of the year. Moreover, the supply of new homes is expected to drop by 15%, falling to 411,022 units.
Stability in Real Estate Prices
Samir Jasuja, CEO and Founder of PropEquity, commented on the situation, stating that the year-on-year decrease is partly due to a high comparative base effect from 2023. He emphasized that despite the decline in sales and supply, the supply-to-sales ratio remains comparable to the previous year, indicating persistent strength in the real estate sector.
City-Specific Sales Performance
The report highlights varying performance across India’s major cities:
| City | 2023 Sales (Units) | 2024 Sales (Units) | Percentage Decline |
|---|---|---|---|
| Bengaluru | 66,600 | 60,506 | 9% |
| Chennai | 21,515 | 19,212 | 11% |
| Hyderabad | 82,350 | 61,722 | 25% |
| Kolkata | 18,697 | 18,595 | 1% |
| Mumbai | 53,208 | 50,140 | 6% |
| Navi Mumbai | 29,085 | 33,870 | 16% |
| Pune | 106,351 | 92,643 | 13% |
| Thane | 95,336 | 90,288 | 5% |
| NCR – Delhi | 41,678 | 43,923 | 5% |
Despite the declines in most cities, Navi Mumbai exhibited a remarkable growth of 16%, indicating pockets of resilience within the market. Additionally, the National Capital Region (NCR) of Delhi saw a 5% increase in sales, which may suggest a shift in buyer preferences towards suburban areas.
Conclusion: Future Outlook for Real Estate
As we move further into 2024, the Indian real estate market faces challenges with reduced buyer activity and lower new housing supply. However, with price stability and varying performance across regions, it presents a mixed outlook for potential buyers and investors. Stakeholders must remain agile and responsive to market trends, especially as economic conditions evolve. Understanding these dynamics will be crucial for making informed decisions in the coming year.