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After a 2-year bull run, residential real estate activity across the top cities stabilized in Q3 2024 - typically a slow quarter due to the monsoon and perceived inauspiciousness. Latest ANAROCK data reveals that housing sales across the top 7 cities declined by 11% annually, clocking in at approx. 1,07,060 units in Q3 2024 against approx. 1,20,290 units in Q3 2023. However, sales continued to outstrip new supply in Q3 2024, reflecting continued health in the market.

Anuj Puri, Chairman – ANAROCK Group, says, “Among the top 7 cities, MMR recorded the highest sales of approx. 36,190 units, followed by Pune with approx. 19,050 units. Cumulatively, the two western cities accounted for 52% of the total sales across the top 7 cities in Q3 2024. All the top cities individually recorded a dip in housing sales. The top 7 cities also witnessed a drop in new housing supply, with approx. 93,750 units launched in Q3 2024 against 1,16,220 units in the corresponding period in 2023 - a 19% annual drop. Nevertheless, the fact that sales remained higher than launches indicates that the demand-supply equation remains robust.”

City-wise, MMR topped new supply with approx. 29,615 units launched in the quarter, followed by Bengaluru with approx. 15,915 units. Interestingly, while most cities saw new supply decline annually, NCR and Chennai saw whopping 53% and 51% increases, respectively.

In terms of budget segments, the >INR 1.5 Cr luxury housing segment witnessed the highest new supply of 33%, followed by the premium (INR 80 lakh – INR 1.5 Cr) segment with a 30% share. The mid segment (INR 40– 80 lakh) contributed a 23% share of the total new supply during the quarter, while the affordable segment's share fell further to just 13% – the lowest in a quarter."

Available housing inventory saw an 8% yearly decline across the top 7 cities amid strong sales – from over 6.10 lakh units as on Q3 2023-end to over 5.64 lakh units by Q3 2024-end. The inventory decline is largely attributable to sales exceeding new launches in the quarter.

Average residential prices in the top 7 cities collectively saw double-digit growth of 23% in Q3 2024 against Q3 2023. Hyderabad recorded the highest 32% annual growth, followed by Bengaluru and NCR with 29% increases each. 

“Housing sales in the third quarter tapered down amid high prices and the monsoon season," says Puri. "As always in this period, the ‘shraad’ period also suppressed demand to an extent as many Indians defer home buying in this period. Overall, the housing market is stabilizing after creating a new peak in Q1 2024.”

Developers have several projects lined up during the festive quarter (Oct.-Dec.) during which the market is expected to see an uptick in demand.

"That said, growth in the upcoming quarters may not be as steep as seen in the last 1-2 years," says Puri. "Residential prices too seem to have peaked out and are now gradually stabilizing across cities. Developers are likely to roll out several offers and discounts during the upcoming festive quarter to attract buyers."  

New Supply Overview

The top 7 cities saw approx. 93,750 units launched in Q3 2024, against 1,16,220 units in Q3 2023 – a 19% annual decline. On a quarterly basis, there was a 20% drop. In Q2 2024, approx. 1,17,170 units were launched across the top 7 cities.

The key cities contributing to new supply in Q3 2024 were MMR (Mumbai Metropolitan Region), Bengaluru, NCR (National Capital Region), and Hyderabad, which together accounted for 78% of the total addition.

MMR saw approx. 29,615 units launched in Q3 2024 – an 18% yearly decrease and a 33% quarterly decline. Over 53% of the new supply during the quarter was added in the INR 40 lakh to INR 2.5 Cr segment

Bengaluru added approx. 15,915 units in Q3 2024 - a quarterly decline of 1% but 7% annual growth. Approx. 87% of the new supply was added in the mid and upper-mid-segment (INR 40 lakh – INR 1.5 Cr)

NCR saw a 53% yearly increase in new launches with approx. 14,130 units added in Q3 2024. On quarterly basis, this market a 17% decline compared to Q2 2024. A massive 64% of the new supply in the quarter was added in the ultra-luxury segment (>INR 2.5 Cr)

Hyderabad added approx. 13,890 units in Q3 2024 compared to 24,900 units in Q3 2023 – a 44% yearly decline and a 1% quarterly increase in new launches. A whopping 97% of the new supply was added in the premium, luxury, and ultra-luxury segments (priced upward of INR 80 lakh)

Pune added approx. 12,450 units in Q3 2024, witnessing a yearly decline of 49% and a 34% quarterly dip in new supply. Over 74% of the new supply was added in the mid and upper-mid-segment (INR 40 lakh – INR 1.5 Cr)

Chennai added approx. 4,620 units in Q3 2024, seeing an 11% quarterly decline but a 51% annual jump. Over 80% of the new supply was added in the mid and upper-mid-segment (INR 40 lakh – INR 1.5 Cr)

Kolkata added approx. 3,130 units in Q3 2024, a 5% annual decrease but a 46% rise over the previous quarter. Approx. 56% of the new supply was added in the sub-INR 80 lakh segment.

Housing Sales Overview

Approx. 1,07,060 units were sold in Q3 2024 – a yearly decline of 11% and a quarterly dip of 11%.  NCR, MMR, Bengaluru and Pune together accounted for 80% of the sales in the quarter.

MMR recorded the highest sales among the top 7 cities in Q3 2024, with approx. 36,190 units sold - a quarterly decrease of 13% and a 6% yearly drop

Pune saw approx. 19,050 units sold in Q3 2024, a decrease of 10% over Q2 2024 and a 17% annual decline over Q3 2023

NCR saw approx. 15,570 units sold in Q3 2024, a marginal decline of 2% over last year and of 6% on a quarterly basis

Bengaluru sold approx. 15,025 units in Q3 2024, a quarterly and yearly decline of 8% each

Hyderabad recorded approx. 12,735 units sold in Q3 2024, decreasing by 16% over Q2 2024 and 22% over Q3 2023

Kolkata saw approx. 3,980 units sold in Q3 2024, declining by 14% over the previous quarter and by 25% over the corresponding quarter in 2023

Chennai saw approx. 4,510 units sold during the quarter- declining by 10% quarterly and by 9% annually

Available Inventory

Available inventory across the top 7 cities collectively declined by 2% on a quarterly basis, standing at approx. 5,64,415 units by Q3 2024-end. On an annual basis, inventory declined by 8% in Q3 2024 across the top 7 cities.

Price Movements

Due to escalating input costs as well as significant sales growth, average residential property prices across the top 7 cities collectively rose by 23% annually - from INR 6,800 per sq. ft. in Q3 2023 to INR 8,390 per sq. ft. in Q3 2024. Among the top 7 cities, Hyderabad saw the highest 32% jump in average prices. On a quarterly basis, average prices in the top 7 cities rose by 4%.

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