Year-ender 2024: Housing sales expected to fall by 21% annually; Hyderabad likely to witness maximum drop in sales

2024 has unfolded a fascinating yet challenging chapter for India's housing market. As the year draws to a close, the spotlight shifts to a significant dip in housing sales across major cities, an intriguing juxtaposition to the sector's otherwise robust fundamentals. With residential property sales expected to plummet by 21% compared to last year, Hyderabad emerges as the city witnessing the sharpest decline.

An Overview of the Decline

The real estate industry, typically resilient, finds itself navigating through turbulent waters. Data indicates a drop in residential property sales to 1,08,261 units in the final quarter of 2024, down from 1,37,225 units during the same period in 2023. This sharp decrease can be attributed to the high base effect of the previous year, as highlighted by Samir Jasuja, CEO and founder of PropEquity.

Jasuja, however, remains optimistic:

"A closer look at the numbers reveals that despite the drop, the supply-to-absorption ratio in 2024 remains the same as in 2023, indicating strong and healthy fundamentals for the real estate sector."

City-Specific Analysis

Among the cities surveyed, Hyderabad has faced the steepest drop in sales, with a staggering 47% decline, from ,b>24,044 units in the fourth quarter of 2023 to just 12,682 units this year.

Other cities also witnessed notable declines:

• Mumbai: Sales dropped by 27%, from 13,878 units to 10,077 units.
• Pune: A 24% decrease, with sales reducing to 20,230 units from 26,641 units.
• Kolkata: Recorded a 33% fall, with units sold dropping to 3,763 from 5,653.
• Thane: Sales dipped by 16%, to 21,893 units from 26,099 units.
• Navi Mumbai: A 13% decrease, with 7,478 units sold, down from 8,607 units.
• Bengaluru: Experienced a 13% decline, reducing sales to 14,957 units from 17,276 units.
• Chennai: Witnessed a 9% drop, with sales falling to 4,266 units from 4,673 units.

The Exception: Delhi-NCR's Growth Story

Amid the prevailing trend of declining sales, the Delhi-NCR market stands as a beacon of hope. Housing sales in this region surged by 25%, climbing from 10,354 units in Q4 2023 to an impressive 12,915 units in the corresponding period this year. This growth is largely driven by festive demand and renewed consumer interest, reinforcing the market's resilience.

Why This Matters

Despite the year-on-year drop, experts suggest that the Indian real estate sector remains fundamentally sound. The unchanged supply-to-absorption ratio, coupled with quarter-on-quarter improvements fueled by festive demand, underscores a promising trajectory for 2025.

Looking Forward

As we bid farewell to 2024, the real estate sector demonstrates an unwavering commitment to innovation and adaptability. The story of Hyderabad and other cities may be one of temporary setbacks, but the narrative of Delhi-NCR reminds us that resilience is at the heart of India's housing market.