New report reveals significant drops in launches and sales across major Indian cities, yet optimism remains high for the future.

The third quarter of 2024 has brought a notable decline in new housing launches and sales in India’s top nine cities, as detailed in a recent report from PropEquity, a real estate data analytics firm. New housing launches dropped by 11%, while sales fell by 18%, indicating a challenging quarter for the market.

Key Figures Reflect Market Trends

From July to September 2024, new launches decreased to 93,693 units compared to 105,655 units during the same period last year. Sales also experienced a downturn, falling to 104,393 units from 126,848 units year-over-year. This data encompasses major urban centers including NCR, Mumbai, Navi Mumbai, Thane, Pune, Bengaluru, Hyderabad, Chennai, and Kolkata.

Regional Insights and Future Outlook

While the overall figures paint a picture of decline, experts highlight that demand remains robust. The absorption of units is still outpacing new launches, suggesting that the market is navigating through typical seasonal fluctuations rather than facing a fundamental downturn. In cities like Hyderabad and Navi Mumbai, the focus has shifted toward plot developments rather than apartment complexes, contributing to a shift in the types of new offerings.

Performance by City: Mixed Results

On a year-over-year basis, only NCR, Mumbai, and Thane experienced growth in new supply, with increases of 221%, 18%, and 11% respectively. Conversely, cities such as Hyderabad, Kolkata, Chennai, Bengaluru, Navi Mumbai, and Pune saw significant declines, with Hyderabad leading the downturn at 54%. Interestingly, the year-on-year sales absorption increased in only two regions: Delhi NCR (22%) and Navi Mumbai (4%), while the remaining cities reported losses, with Hyderabad again facing the steepest drop at 42%.

Infrastructure Growth Bolsters Market Confidence

Real estate experts attribute the ongoing demand to significant infrastructure developments in NCR. Projects like the Dwarka Expressway, the Delhi-Mumbai Expressway, and the upcoming Noida International Airport are expected to drive continued investment and interest from both private equity players and homebuyers. The anticipation of luxury home demand across various micro-markets further reinforces a positive outlook for the region.

Anticipating a Resilient Festive Quarter

Industry insiders note that the third quarter is traditionally slower due to developers delaying launches in anticipation of the festive season. However, the NCR market is showing signs of resilience, with encouraging inquiries from potential buyers. Experts predict that upcoming quarters could see an uptick in sales, potentially surpassing previous festive seasons.

As the market adapts to these fluctuations, the overall sentiment remains one of cautious optimism, with stakeholders closely watching how upcoming infrastructure projects will influence future demand.