Housing prices see 23% annual growth but sales drop 11% in July-Sep

Housing prices in India saw a 23 per cent annual growth but sales dropped 11 per cent to 1.07 lakh units across the country’s top seven cities during the July-September 2024 period, according to a report released by the international property consultants Anarock on September 26.

Analysed individually, every major city in India registered a dip in sales. However, sales figures were still bigger than the number of launches during the period of survey, which indicated a strong demand-supply equation continues to exist in the sector.

The domestic housing market recorded a new high in the January-March 2024 quarter but numbers have steadied since then. High prices, heavy monsoon and the onset of shraadh were reasons for an ensuing fall in sales, according to Anarock, which added in its report that the seven major cities of India recorded a 19-per cent fall in new housing supply. In all, 93,750 units were launched in July-September 2024 compared to 1,16,220 units in the same period last year.

INPUT COSTS, SALES SURGE DRIVE PRICES

The report said average housing cost rose across the board in India’s seven cities owing to increase in sales and rise in input expenses.

“Due to escalating input costs as well as significant sales growth, average residential property prices across the top 7 cities collectively rose by 23 per cent annually — from Rs 6,800 per sq. ft. in Q3 2023 to Rs 8,390 per sq. ft. in Q3 2024,” the Anarock report said.

Among the top seven cities, Hyderabad registered the biggest jump — of 32 per cent —in average prices.

MMR TOPS IN JULY-SEP SALES, OVERALL NUMBERS DOWN

Mumbai Metropolitan Region (MMR) registered the biggest numbers in sales among the top seven cities in the July-September quarter, at 36,190 units. This was a 6-per cent drop than the year-ago sales figure of 38,505 units.

Pune was next in terms of number of units (19,050) sold during the quarter, the figure registering a 17-per cent drop in sales from 22,885 units.

Delhi-NCR saw a marginal decline of 2 per cent in sales, from 15,865 unites to 15,570 units.

Bengaluru developers sold 15,025 units in the July-September 2024 quarter, the figure registering an 8-per cent fall from 16,395 units sold in the year-ago period.

In Hyderabad, 12,735 units were sold in the quarter under review, which marked a 22-per cent drop in numbers from 16,375 units in the July-September quarter of 2023.

Kolkata saw a 25-per cent drop in housing sales as number dwindled to 3,980 units in July-September 2024 from 5,320 units in the same quarter last year.

Chennai, sales dropped from 4,945 units to 4,510 units, recording a drop of 9 per cent on a year-on-year basis in the July-September period.

FESTIVE BUZZ AHEAD

According to the report, almost every city has several projects lined up for the festive quarter of October-December, when residential demand normally surges. However, the report noted that with demand and prices stabilising, builders are likely to bank on discounts and other offers to woo buyers during the festive months.