Housing sales fall in Q2of 2024 on rising property prices across major cities
Mumbai and Pune accounted for major chunk of housing sales. Housing prices rose 7 per cent on an average in April-June period
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Bengaluru: Housing sales across major cities have fallen during April-June period of ongoing financial year owing to rise in property prices and high base effect playing out.
According to real estate consultancy firm Anarock, housing sales during the second quarter of 2024 stood at 1,20,340 units, which was 8 per cent less than the previous quarter. During January-March period, the country has seen sale of 1,30,170 units across top seven cities. These are National Capital Region (NCR), MMR (Mumbai Metropolitan Region), Bengaluru, Pune, Hyderabad, Chennai, and Kolkata.
Among these top cities, MMR and Pune accounted for over 52 per cent of the total sales with over 62,685 units sold altogether in these cities during April-June period. NCR is the only city to see a quarterly rise of 6 per cent per cent in Q2 of 2024 as compared to previous quarter.
“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,”Anuj Puri, Chairman of Anarock Group said in a release.
Data indicates that average residential prices have seen a rise of 7 per cent over previous quarter while annual rise of 25 per cent in the top seven 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. However, if prices are kept in check henceforth, housing sales may not be majorly impacted in the upcoming quarters,” Puri added.
Meanwhile, new residential property launches continued to increase as real estate developers came up with new properties on the back of strong demand.
The top 7 cities added 1,17,170 new units launched in second quarter of 2024 as compared to around 1,10,870 units in Q1 of 2024, a rise of 6 per cent over the previous quarter.
The key cities contributing to new launches in second quarter were MMR (Mumbai Metropolitan Region), NCR, Pune, and Bengaluru, which together accounted for 82 per cent of the supply addition.
In terms of pricing, 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 sft. as of end of second quarter. Hyderabad recorded the highest yearly jump of 39 per cent in average residential prices in second quarter of 2024.
