By laksh5382 
The current quarter is not proving to be that good for residential real estate The sector is witnessing a decline in both new supply and absorption. New housing supply in India’s top nine cities has fallen by a third year-on-year and sales have fallen by more than a fifth, data indicate.
According to data provided by real estate data analytics firm PropEquity, 85,765 new housing units have come into the market so far in the fourth quarter of 2024, down 33 per cent from 1.28 lakh units a year ago.
Home sales in the quarter fell 21 per cent to just over 1 lakh units compared to around 1.4 lakh units a year ago. The data shows the decline has occurred in all cities, except Delhi-NCR, which reversed the trend on both aspects.
The cities surveyed are Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, Navi Mumbai and Pune.
Sales in nine cities grew 5 percent and launches grew 7 percent in the quarter.
slowdown in sales
The decline in sales ranges from 9 to 47 percent, with Chennai seeing the lowest and Hyderabad seeing the highest decline.
Hyderabad has been witnessing a slowdown in the sales volume of premium homes, which account for a large part of the demand, in recent months. About 12,682 housing units were sold in the city in the quarter under review, compared to about 24,044 units a year ago. The September quarter also saw a decline of more than 20 per cent in sales volumes in the city, pointing to a longer trend of slowing sales momentum.
Prices in the city have risen rapidly over the past year, making homes out of reach for many. According to ANAROCK, the average ticket price in the city rose to ₹1.15 crore in H1FY2015 from ₹84 lakh in H1FY2014.
According to the data, sales in Chennai have declined by 9 percent year-on-year and 10 percent quarter-on-quarter. Sales in Mumbai, which accounts for almost half of the country’s total residential market by value, fell 27 per cent to just over 10,000 units.
The only exception in the list, sales in Delhi-NCR grew 25 per cent year-on-year and 20 per cent quarter-on-quarter to 12,915 units.
supply drop
The decline in new supply ranges from 11 to 52 per cent, with Bengaluru seeing the lowest decline and Hyderabad again seeing the highest decline.
In Bengaluru, about 14,511 new housing units came up in the quarter under review, compared to 16,364 units a year ago.
Bengaluru has been a strong residential market due to the demand from IT professionals earning high incomes. One troubling data point is that the city has seen a 22 per cent decline in launches sequentially from the September quarter – reflecting an overall declining trend.
New supply in Chennai has fallen by 17 per cent year-on-year and 32 per cent quarter-on-quarter to 3196 units, indicating weakness in the market.
New supplies in Mumbai fell 25 per cent year-on-year and 10 per cent sequentially to 7234 units.