Downturn or Growth? The Truth Behind India’s 2024 Housing Trends
The residential real estate market in India’s top-9 cities saw a small drop in 2024. Sales decreased by 9%, totaling 4,70,899 units, while new supply fell by 15%, reaching 4,11,022 units. The slowdown was due to the general elections and the monsoon season, which affected the first half of the year. In 2023, there were 5,14,820 units sold and 4,81,724 new units launched.
Despite the decline, the real estate sector’s fundamentals remain strong. The supply-to-absorption ratio, which shows how much of the new supply was sold, stayed the same as in 2023. This suggests that the market is healthy, and the slowdown is temporary.
Main Points:
- Only two cities saw an increase in housing sales, with Navi Mumbai seeing the highest growth.
- New supply grew in four cities, with Delhi-NCR having the biggest increase.
- Hyderabad struggled the most, with big drops in both sales and new supply.
Housing Sales in 2024:
| Location | 2024 Sales (Units) | 2023 Sales (Units) | Change (%) |
|---|---|---|---|
| Bengaluru | 60,506 | 66,600 | -9% |
| Chennai | 19,212 | 21,515 | -11% |
| Hyderabad | 61,722 | 82,350 | -25% |
| Kolkata | 18,595 | 18,697 | -1% |
| Mumbai | 50,140 | 53,208 | -6% |
| Navi Mumbai | 33,870 | 29,085 | 16% |
| Pune | 92,643 | 106,351 | -13% |
| Thane | 90,288 | 95,336 | -5% |
| Delhi NCR | 43,923 | 41,678 | 5% |
| Total | 470,899 | 514,820 | -9% |
New Supply in 2024:
| Location | 2024 New Supply (Units) | 2023 New Supply (Units) | Change (%) |
|---|---|---|---|
| Bengaluru | 72,111 | 56,769 | 27% |
| Chennai | 20,522 | 19,417 | 6% |
| Hyderabad | 48,164 | 94,889 | -49% |
| Kolkata | 14,764 | 20,645 | -28% |
| Mumbai | 40,963 | 39,468 | 4% |
| Navi Mumbai | 28,363 | 31,541 | -10% |
| Pune | 70,848 | 96,807 | -27% |
| Thane | 69,784 | 92,665 | -25% |
| Delhi NCR | 45,503 | 29,523 | 54% |
| Total | 411,022 | 481,724 | -15% |
Outlook for the Market:
According to Samir Jasuja, CEO of PropEquity, the decline in sales and supply is because 2023 was a peak year. However, the market is still strong. Vijay Harsh Jha, CEO of VS Realtors, believes that weak demand, inflation, and global uncertainties caused the slowdown. He expects developers to focus more on affordable housing, especially below Rs 1 crore, where demand remains high.
In conclusion, while the real estate market saw a dip in 2024, the outlook is positive, especially in the affordable housing segment.
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