Real Estate Slump: Housing Sales Dip, New Supply Falls Across Top 9 Cities In 2024

The real estate sector saw a marginal decline in 2024 with housing sales dropping by 9 per cent and new launches declining by 15 per cent across the top nine cities in India. According to a report by PropEquity, a real estate data analytics firm, the realty market closed with 4,70,899 units sold and 4,11,022 units launched last year showing a steep decline in comparison to the 5,14,820 units sold and 481,724 units launched in 2023.

The data shows that two factors played a significant role in this decline, namely, the General Elections and an extended monsoon season. However, the experts note that the fundamentals of the sector remain upbeat despite such dips.

Says Samir Jasuja, CEO and Founder of PropEquity, “The drop in housing supply and sales in 2024 is due to the high base effect, as 2023 was a peak year. A closer analysis reveals that the supply-to-absorption ratio for 2024 remains the same as last year (2023), which is a healthy indicator for the real estate market.”

Here’s How The Top Nine Cities Performed:

Two cities have performed well while others saw a muted year. Navi Mumbai and Delhi-NCR saw housing sales rise by 16 per cent (reaching 33,870 units) and 54 per cent (45,503 units) respectively.

Delhi-NCR recorded a 5 per cent increase with 43,923 units sold. However, the picture wasn’t as rosy as Hyderabad, which saw the steepest decline in both sales and new launches.

Housing sales in the city fell by a significant 25 per cent, settling at 61,722 units while new supply plummeted by 49 per cent. Kolkata also had a challenging year, with sales dropping by 1 per cent to 18,595 units and new supply shrunk by 28 per cent.

The western region also struggled, with Mumbai, Pune, and Thane witnessing declines in both sales and new launches. Housing sales in Mumbai dropped by 6 per cent to 50,140 units, Pune fell by 13 per cent to 92,643 units, and Thane dipped by 5 per cent to 90,288 units. In terms of new launches, Pune and Thane recorded significant drops of 27 per cent and 25 per cent, respectively.

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The southern region of the country with some major hubs, such as Bengaluru’s sales dipped by 9 per cent to 60,506 units, while Chennai recorded an 11 per cent fall to 19,202 units. However, Bengaluri managed to see a 27 per cent increase in new launches, reaching 72,111 units - the second-highest growth in new supply among the nine cities. Chennai’s new supply modestly by 6 per cent to 20,522 units.

The decline in new launches across most cities highlights a cautious approach by developers. Says Jasuja, “Weak demand may have prompted developers to go slow on new launches. Despite this, cities like Delhi-NCR and Bengaluru saw new supply exceed absorption which could signal a more optimistic outlook in the long-term.”