NEW DELHI: Residential property units sales in the top eight cities witnessed a sharp 26 per cent decline during the December quarter of 2024, signaling a potential slowdown in the property sector.
The fall in demand, driven by high property prices and economic uncertainties, saw sales dip to 1,06,038 units from 1,43,482 units in the same period last year, according to data from real estate consultant PropTiger.
The October-December festive season, traditionally a high-sales period, failed to boost the sector as developers and buyers alike adopted a cautious approach.
Dhruv Agarwala, Group CEO of Housing.com & Proptiger.com, attributed the decline to rising property prices, global economic challenges, and major state elections. “
While the festive period saw a quarter-on-quarter uptick in sales, the year-on-year decline in both sales and new launches is telling.
The market is likely to remain cautious in the coming quarters, with economic growth slowing and no immediate signs of interest rate cuts,” he said.
Despite the sluggish December quarter, the overall housing sales for 2024 registered a modest 6 per cent growth, reaching 4,36,992 units across eight major cities, compared with 4,10,791 units in the previous year.
However, the uneven performance across regions raises questions about the sector’s resilience.
Regional performance
Delhi-NCR emerged as the lone bright spot in the December quarter, with sales climbing 50 per cent year-on-year to 9,808 units from 6,528 units. However, other regions painted a bleak picture:
Mumbai Metropolitan Region (MMR) retained its top position with 33,617 units sold but suffered a steep 31 per cent drop from 48,553 units.
Pune followed with 18,240 units, marking a similar 31 per cent decline.
In the South, Bengaluru recorded 13,236 units (down 23 per cent), Hyderabad 13,179 units (down 36 per cent), and Chennai 4,073 units (down 5 per cent).
Ahmedabad saw a 34 per cent drop to 10,170 units, while Kolkata recorded a 21 per cent decline, with sales falling to 3,715 units.
The steep decline in December quarter sales has cast a shadow over the property sector’s outlook, raising concerns about whether this trend will persist in 2025. With no clear signs of economic recovery or interest rate relief, stakeholders are likely to tread carefully in the months ahead.
