Housing Sales in India Experience Steady Growth, Except in Delhi-NCR
The housing sales market in India witnessed a 5% annual increase during the July-September period, reaching a total of 87,108 units across eight major cities. This surge in sales was primarily driven by the high demand for premium homes, according to a recent report by real estate consultant, Knight Frank India.
Report Highlights Positive Momentum in Residential Market
During a webinar, Knight Frank India released its ‘India Real Estate’ report for the third quarter of the calendar year 2024. The report highlighted positive momentum in the residential market, with the third quarter seeing the highest sales volume of the year.
Demand for Premium Housing fuels Sales Growth
Shishir Baijal, Chairman and Managing Director of Knight Frank India, emphasized that the increase in housing sales was largely due to the strong demand for premium housing priced above Rs 10 million. However, he also expressed concerns regarding the affordable housing segment, citing decreased sales as a result of availability and affordability issues.
Contrasting Data from Multiple Reports
The Knight Frank report contradicted previous data from Anarock and PropEquity, which indicated a decline in overall sales across major cities during the same period. These discrepancies in data underscore the complexity of India’s real estate market and the need to interpret comprehensive and reliable information for an accurate analysis.
Mixed Fortunes for Major Cities
The report suggests that housing sales witnessed growth in all markets except for Delhi-NCR, which experienced a 7% year-on-year drop in sales. Mumbai led the market with the highest volume of sales, reaching 24,222 units and achieving a remarkable 9% growth compared to the previous year. Bengaluru followed closely, showing exceptional growth with an 11% increase in sales, amounting to 14,604 units.
Encouraging Numbers in Pune, Hyderabad, and Ahmedabad
While Pune witnessed a modest 1% rise in housing sales, it still recorded a significant number of 13,200 units. Hyderabad, on the other hand, boasted a notable 9% increase, with 9,114 units sold. Meanwhile, Ahmedabad experienced a promising growth of 11%, reaching 4,578 units.
Kolkata and Chennai Record Sales Growth
The residential property markets in Kolkata and Chennai saw positive trends as well. Kolkata recorded a noteworthy 14% increase, totaling 4,309 units, while Chennai witnessed a 6% rise to 4,105 units.
Challenging Times in the Delhi-NCR Market
Unfortunately, the report reveals a challenging situation in the Delhi-NCR market, as housing sales declined by 7% during the July-September period, with only 12,976 units sold compared to the previous year. This decline poses a challenge for developers and highlights the need for interventions to stimulate sales and revive the market.
The real estate sector continues to be a crucial element of India’s economy and provides valuable insight into the overall consumer sentiment and purchasing power. The varied performance across cities underlines the importance of analyzing localized trends and implementing targeted strategies to ensure sustainable growth and meet the demand for different price segments.
