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) shows a mixed performance. While there has been a noticeable decline in new launches and sales compared to the previous quarter, underlying signs of resilience and robust market health have emerged. Cities like Hyderabad and Pune experienced notable declines in new launches, with Hyderabad seeing a decrease of 36 per cent year-on-year and Pune dipping by 47 per cent. On the other hand, Delhi-NCR showed a 95 per cent year-on-year increase in new launches.
According to the report, 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. Despite this decline, the year-on-year drop was less significant at 13 per cent from the previous year. Residential unit sales in Q2 2024 were 119,901 units, down 18 per cent from the previous quarter. However, Delhi-NCR stood out with a 7 per cent quarter-on-quarter increase in sales, showcasing robust demand despite the overall market slowdown.
Hyderabad and Pune saw significant declines in sales, with Hyderabad dropping by 20 per cent year-on-year and Pune by 15 per cent. Meanwhile, Bangalore maintained stable sales, with a 8 per cent quarter-on-quarter drop in new launches. Chennai saw a notable 67 per cent year-on-year rise in new launches, while Mumbai experienced a slight decline in both new launches and sales. Navi-Mumbai, on the other hand, saw strong buyer interest with a 17 per cent quarter-on-quarter growth in new launches and a 36 per cent year-on-year increase in sales.
Overall, the PropEquity report highlights that despite the declines in new launches and sales, the overall market health remains positive. Absorption rates being 20 per cent higher than new supply signal sustained demand and the continuing robustness of the residential real estate sector post-COVID-19. Samir Jasuja, CEO & MD of PropEquity, emphasized that the residential real estate market continues to be robust post-COVID, with a marginal drop in new launch supply primarily due to the election quarter and Q2 being slightly sluggish compared to other quarters of the year.
