Industry Odisha Bureau, Sep 26: India’s housing sales dropped 6% in July-September to 1.03 lakh units. Slow demand weighed on most markets. Yet city-level divergence was stark, with three markets posting growth.*
India’s residential property market moved in several directions this quarter. Across nine major cities, housing sales fell to 1,03,170 units in July-September. That compares with 1,09,420 units a year earlier, a 6% drop. The headline figure, however, conceals wide gaps between individual markets. Data from PropEquity, which tracks nine primary residential markets, shows the split clearly.
Hyderabad and Navi Mumbai buck the trend
Navi Mumbai posted the sharpest gain among the tracked cities. Sales there rose 12% to 9,810 units from 8,730 units. Hyderabad followed closely, with sales climbing 11% to 15,470 units. The city had recorded 13,890 units in the year-ago quarter. Bengaluru held broadly steady, edging up 1% to 17,340 units from 17,170. These three were the only markets to record year-on-year growth.
Declines across six markets
The remaining six cities all reported lower housing sales. Chennai and Kolkata each recorded a 17% drop. Chennai sales fell to 4,680 units from 5,640 units. Kolkata slipped to 3,860 units from 4,640 units. Pune, among the larger markets, declined 16% to 17,860 units from 21,190. Delhi-NCR sales fell 12% to 8,090 units from 9,230 units.
Within the Mumbai Metropolitan Region, performance varied. Thane sales fell 11% to 16,230 units from 18,240 units. Mumbai itself declined 8% to 9,830 units from 10,690 units. Navi Mumbai’s growth stood in contrast to both neighbours.
Fresh supply also eases
New housing supply softened alongside sales. Fresh supply fell to 98,165 units from 1,00,330 units. Both transactions and launches therefore moderated during the quarter. PropEquity attributed the slowdown mainly to slow demand and lower fresh supply. It also said global economic uncertainties dampened buying sentiment.
A seasonally quieter quarter
July-September is generally a slower period for housing sales. According to PropEquity, monsoon rains tend to discourage developers from launching projects. The December quarter typically draws support from festive demand. Developers often respond by adding fresh supply and offering buyer incentives.
Holding near the one-lakh mark
Samir Jasuja, founder and chief executive of PropEquity, offered a broader view. He said tier-1 cities continue to hover around the one-lakh quarterly mark. That level, he noted, applies to both new residential supply and sales.
The festive test
The quarter’s 6% decline did not fall evenly across major Indian cities. Three markets grew while six contracted, several by double digits. The coming festive season will test whether demand can broaden across markets. For now, India’s housing map remains clearly divided.
