Housing sales dips in Q2 in top 7 cities, up 5 per cent Y-o-Y

Hyderabad: The bull run in residential sales across the top 7 cities tamed down marginally in the second quarter of 2024, to the backdrop of increasing property prices and a high base record of the previous quarter (Q1 2024). Latest Anarock Research data reveals that housing sales witnessed a quarterly drop of 8 per cent and stood at approx. 1,20,340 units in Q2 across these cities, against approx 1,30,170 units sold in Q1. However, on a yearly basis, there has been a 5 per cent rise in residential sales, a media release says.

The two western cities - MMR and Pune - accounted for over 52 per cent of the total sales in the top 7 cities with over 62,685 units sold altogether in these cities in Q2. NCR is the only city to see a quarterly rise (of 6 per cent) in housing sales in the quarter against Q1 2024.

New launches across these cities continued to break previous records with a 6 per cent Q-o-Q rise – from approx 1,10,870 units in Q1 to approx 1,17,170 units in Q2. MMR and Pune saw the maximum new supply, accounting for 54 per cent of the total new launches across these cities. Individually, the two cities saw 31 per cent and 1per cent quarterly increases in their new supply, respectively.

Notably, NCR witnessed a 134 per cent Q-o-Q jump in new supply in Q2 against Q1 this year.

Anuj Puri, Chairman, Anarock Group, says, “The quarterly decline seen in housing sales is essentially because of the all-time high base considered in the previous quarter, when more than 1.30 lakh units were sold. Most importantly, this drop is also due to the significant hike in property prices over the last one year, which in turn has prompted many investors to take a breather.”

Data indicates that average residential prices have seen a quarterly jump of 7 per cent while annual rise of a significant 25 per cent in the top 7 cities.

“NCR witnessed the highest quarterly jump of 10 per cent in Q2 2024 while Hyderabad saw the highest yearly jump of 38 per cent in average residential prices,” says Puri. “However, if prices are kept in check henceforth, housing sales may not be majorly impacted in the upcoming quarters.”

New launch

The top 7 cities recorded approx 1,17,170 new units launched in Q2, against approx 1,10,870 units in Q1 - increasing by 6 per cent over the previous quarter. The key cities contributing to new launches in Q2 were MMR (Mumbai Metropolitan Region), NCR, Pune, and Bengaluru, which together accounted for 82 per cent of the supply addition.

• MMR saw approx. 44,120 units launched in Q2 2024 – increasing by 31 per cent over Q1 2024 and over 2 per cent on yearly basis. More than 64 per cent new supply was added in the sub-Rs80-lakh budget segment.

• Pune added new supply of approx 18,920 units in Q2 compared to approx 18,770 units in Q1 – an increase of 1 per cent. On a yearly basis, the city recorded a 11 per cent decline in new supply. Over 73 per cent of the new supply in Q2 was added in the mid and premium segments (units priced between Rs40 lakh to Rs1.5 crore.)

• Hyderabad added approx 13,750 units in Q2, a quarterly decline of 40 per cent but a 31 per cent rise against the corresponding period in 2023. Over 69 per cent of the new supply in Q2 2024 was added in the mid and premium price segments.

• Bengaluru added approx. 16,020 units in Q2 2024, declining quarterly by 3 per cent. On a yearly basis, there was 40 per cent rise. Approx. 83 per cent of the new supply was added in the premium and luxury segments (Rs 80 Lakh onwards) combined.

• NCR saw a whopping 134 per cent increase in new launches against Q1, with approx. 17,030 units launched in Q2. A whopping 82 per cent of the new launches in second quarter this year were in the luxury segments priced >Rs 1.5 Cr.

• Chennai added approx. 5,180 units in Q2 2024, a quarterly decline of 29 per cent against Q1 2024 and a yearly increase of 3 per cent over Q2 2023. Over 93 per cent was added in the mid and premium segments.

• Kolkata added approx. 2,150 units in Q2 2024, a decrease of 50 per cent over Q1 2024 and 13 per cent drop against Q2 2023. Approx. 64 per cent new supply was added in the mid segment priced between Rs 40 lakh – Rs 80 lakh.

Overall sales overview

Approx. 1,20,340 units were sold in Q2 2024 across the top 7 cities – a quarterly decline of 8 per cent over Q1 2024. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 92 per cent sales in the quarter. On a yearly basis, the top 7 cities recorded a 5 per cent increase in housing sales with approx 1,15,090 units sold back in Q2 2023.

• NCR is the only city to see quarterly growth (of 6 per cent) in housing sales among the top 7 cities – from approx. 15,650 units in Q1 2024 to approx. 16,550 units in Q2 2024.

• MMR witnessed the maximum sales at approx. 41,540 units in Q2 2024, against approx. 42,920 units in Q1 2024 – declining by 3 per cent.

• Pune witnessed housing sales of 21,145 units in Q2 2024, decreasing by 8 per cent over Q1 2024.

• Bengaluru too saw housing sales decrease by 8 per cent in Q2 2024 against Q1 2024, with approx. 16,360 units sold in the second quarter this year.

• Chennai saw approx. 5,020 units sold in Q2 2024 - decreasing by 9 per cent against Q1 2024.

• Hyderabad recorded sales of approx. 15,085 units in Q2 2024, a drop of 23 per cent over Q1 2024.

• Kolkata saw housing sales decrease by 18 per cent in the quarter against preceding quarter (Q1 2024); approx. 4,640 units were sold in Q2 2024.

Price Movement

Average residential property prices across the top 7 cities increased in the range of 4-10 per cent in Q2 2024 when compared to Q1 2024 amid high residential sales. NCR recorded the highest quarterly jump of 10 per cent with the average price at Rs 6,800 per sq. ft. as of Q2 2024-end.

On a yearly basis, the top 7 cities recorded a significant average price rise of between 13 - 39 per cent. Hyderabad recorded the highest yearly jump of 39 per cent in average residential prices in Q2 2024 against Q2 2023.

Available inventory

Amid robust sales, available inventory across the top 7 cities reduced by 1 per cent on a quarterly basis to approx 5.78 lakh units as of Q2 2024-end. On a yearly basis, there has been a 6 per cent decline in the available inventory across the top 7 cities. NCR witnessed the highest yearly decline of 22 per cent - from approx. 1.11 lakh units by Q2 2023-end to approx. 86,900 units as of Q2 2024-end. This is a significant reduction in this top realty hotspot in the country which reeled under excessive unsold stock in previous years.