Real Estate Rollercoaster: Housing Prices Surge Amid Declining Sales

Housing prices in India's top seven cities surged by 11% in the April-June quarter, impacting sales negatively with a 20% decline. Anarock's report indicates geopolitical tensions and soaring prices dampened buyer enthusiasm, while market steadiers include anticipated new launches and easing local tensions.

In a surprising turn for the Indian housing market, property prices surged by 11% in the April-June quarter across major cities, while sales plummeted by 20%, according to real estate consultant Anarock. The noticeable decrease in sales from 1,20,335 units to 96,285 units year-over-year highlights a significant shift in market dynamics.

The decline was reflected across prominent regions such as Delhi-NCR, the Mumbai Metropolitan Region, Bengaluru, Hyderabad, Pune, and Kolkata, with Chennai being the exception, posting an 11% increase in sales. The geopolitical environment, marked by domestic tensions and major military actions, created a challenging market atmosphere.

While Anarock Chairman Anuj Puri attributed the sluggish demand to these upheavals, he remains optimistic about the future. Supporting factors for a market rebound include a recent RBI repo rate cut and a surge in incoming housing projects, expected to boost buyer confidence and sales momentum.

(With inputs from agencies.)