Mumbai (Maharashtra) [India], June 20 (ANI): The latest PropEquity report on the residential market in Tier 1 cities in India for the second quarter of FY 2024 (July to September 2023) reveals a mixed performance with a noticeable decline in new launches and sales compared to the previous quarter, but with underlying signs of resilience and robust market health.
According to the report, cities like Hyderabad and Pune experienced notable declines, with new launches in Hyderabad decreasing by 36 per cent Year-on-Year while Pune’s new launches dipped by 47 per cent. However, Delhi-NCR showed 95 per cent Year-on-Year increase in new launches, rising from 5,708 units in Q2, 2023 to 11,118 units in Q2, 2024.
The Delhi-NCR data encompasses Delhi, Noida, Ghaziabad, Faridabad, Gurugram, and Greater Noida.
The report, prepared by PE Analytics Ltd., offers insights into the dynamics of apartments, independent floors, and villas/row houses, excluding sales on hold, construction on hold, and lottery projects
The total number of new residential units launched in Q2 2024 fell by 7 per cent to 97,331 units compared to 104,319 units in Q1 2024. This represents a less significant year-on-year (Y-o-Y) drop of 13 per cent from 111,657 units in Q2 2023. It says part of the decline in new supply in Q2 being an election quarter, during which developers often hold back on new project launches.
Residential unit sales or absorption in Q2 2024 were 119,901 units, down 18 per cent from the 146,147 units sold in Q1 2024. The Y-o-Y comparison shows a marginal decline of 2 per cent from 121,856 units sold in Q2 2023.
Delhi-NCR stood out with a 7 per cent quarter-on-quarter (Q-o-Q) increase in sales, indicating robust demand despite the overall market slowdown.
Cities like Hyderabad and Pune saw significant declines in sales, with Hyderabad dropping by 20 per cent Y-o-Y and Pune by 15 per cent Y-o-Y.
New launches in Delhi NCR surged by 95 per cent Y-o-Y to 11,118 units, with a 7 per cent Q-o-Q increase in sales, totalling 10,198 units. This strong performance highlights the resilience of the capital region’s real estate market amid broader economic uncertainties.
Bangalore maintained stable sales, despite an 8 per cent Q-o-Q drop in new launches to 14,297 units. The city recorded sales of 15,127 units, reflecting a balanced demand-supply scenario.
Chennai saw a notable 67 per cent Y-o-Y rise in new launches to 5,754 units and maintained steady sales with 4,841 units sold, showing a relatively stable market. The city experienced a significant decline in new launches, down 36 per cent Y-o-Y to 11,603 units, and sales also fell by 20 per cent Y-o-Y to 15,016 units, indicating a cooling market.
Mumbai’s new launches decreased by 6 per cent Y-o-Y to 9,918 units, and sales also saw a slight decline of 1 per cent Y-o-Y, totalling 13,032 units, highlighting a cautious market sentiment.
Navi-Mumbai’s new launches grew by 17 per cent Q-o-Q to 6,937 units, with a substantial 36 per cent Y-o-Y increase in sales, reaching 9,035 units, indicating strong buyer interest.
Pune experienced a sharp 47 per cent Y-o-Y drop in new launches to 15,568 units, and sales also declined by 15 per cent Y-o-Y to 22,482 units, suggesting a more subdued market.
Thane’s new launches decreased by 10 per cent Y-o-Y to 18,726 units, while sales increased by 9 per cent Y-o-Y, totalling 25,041 units, indicating steady demand.
Kolkata saw a 26 per cent Y-o-Y decline in new launches to 3,411 units, yet experienced a 27 per cent Y-o-Y increase in sales, totalling 5,130 units, highlighting a resilient market despite reduced supply.
The PropEquity report underscores that despite the declines in new launches and sales, the overall market health remains positive.
The fact that absorption rates are 20 per cent higher than new supply signals sustained demand and the continuing robustness of the residential real estate sector post-COVID-19. The report also notes that Q1 2024 was an exceptional quarter with the highest absorption levels ever recorded, making the subsequent Q2 decline appear more significant in contrast.
Commenting on the Q2 report, Samir Jasuja, CEO & MD of PropEquity, stated, “The marginal drop of new launch supply in top tier 1 cities is just 8 per cent which is primarily due to election quarter & Q2 being slightly sluggish as compared to other quarters of the year. However, the 20 per cent higher Absorption/Sales as compared to new supply signifies upswing and good health in residential real estate continues and the market continues to be robust post covid.” (ANI)
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