Housing Market Sees Downturn: 9% Drop in Major Indian Cities

Housing sales fell 9% in 2024 across nine major Indian cities due to declining demand and reduced new supply, according to PropEquity data. Despite declines, the supply-absorption ratio remains stable, highlighting the sector's strength. Notable decreases were observed in Chennai and Hyderabad.

The housing sector across nine major Indian cities experienced a 9 percent drop in sales, reaching 4.71 lakh units in 2024. This decline is attributed to decreased demand and reduced fresh supply, as reported by PropEquity, a renowned data analytics firm.

Data released by PropEquity, part of the publicly traded P E Analytics, outlines a significant dip in residential property sales, dropping from 5,14,820 units in 2023 to 4,70,899 units in 2024. Furthermore, new supply took a hit with a 15 percent reduction, which is partly due to two under-activity quarters linked to general elections and monsoon issues.

Samir Jasuja, CEO & Founder of PropEquity, cited a 'high base effect' from the previous year, which influenced the current decline. Despite this downturn, Jasuja noted the steady supply-to-absorption ratio, indicating the sector’s robust and healthy fundamentals.