New Delhi, January 22, 2025 – The residential real estate market across India’s top nine cities experienced a notable slowdown in 2024, as both housing sales and new launches declined. According to a report by NSE-listed real estate analytics firm PropEquity, housing sales dropped by 9% to 4,70,899 units, while new supply fell by 15% to 4,11,022 units. This marks a significant decline from the record-breaking year of 2023, which saw sales of 5,14,820 units and 4,81,724 new launches.
The subdued performance was attributed to a high base effect from the previous year, combined with disruptions caused by the General Elections and an extended monsoon season, which slowed down real estate activity. However, the market displayed regional variations, with some cities demonstrating resilience while others struggled to maintain momentum.
Navi Mumbai emerged as a rare bright spot in 2024, recording a 16% increase in housing sales to 33,870 units. Delhi-NCR also performed well, with a 5% rise in sales to 43,923 units, underlining its position as a key growth market. However, other cities faced declines. Hyderabad suffered the sharpest drop, with sales plummeting 25% to 61,722 units. Bengaluru, which has been a consistent performer in the past, saw a 9% decline in sales to 60,506 units, while Pune experienced a 13% fall to 92,643 units. Mumbai recorded a 6% decrease to 50,140 units, while Thane saw a 5% dip to 90,288 units. Chennai and Kolkata also faced setbacks, with sales down 11% and 1%, respectively.
New supply also reflected these regional disparities. Delhi-NCR led the way, with a significant 54% increase in new launches, reaching 45,503 units. Bengaluru followed with a 27% rise to 72,111 units, while Chennai and Mumbai reported modest increases of 6% and 4%, respectively. In contrast, Hyderabad witnessed a steep 49% decline in new supply, making it the weakest-performing city in this category. Other cities, such as Kolkata, Pune, and Thane, also reported declines in new launches, with reductions of 28%, 27%, and 25%, respectively.
Samir Jasuja, CEO and Founder of PropEquity, noted that the overall dip in activity was expected, given the exceptional performance of 2023. “The drop in housing supply and sales in 2024 is due to the high base effect, as 2023 was a peak year. Despite this, the supply-to-absorption ratio remains consistent with last year, indicating that the fundamentals of the real estate sector are strong and healthy,” he said. Jasuja further highlighted that Hyderabad’s underperformance had a significant impact on the overall numbers, while Delhi-NCR demonstrated encouraging growth in both new supply and sales.
The report also pointed to weak demand as a factor that may have prompted developers to slow down new launches. However, cities such as Bengaluru, Chennai, and Delhi-NCR saw new supply outpace absorption, reflecting developers’ confidence in these markets.
Despite the challenges, industry experts believe that the fundamentals of the Indian real estate sector remain intact. The resilience shown by certain markets, coupled with the consistent supply-to-absorption ratio, underscores the sector’s potential for recovery and growth in the coming years. As developers and investors navigate these challenges, the focus will likely remain on understanding regional dynamics and leveraging market-specific opportunities to drive future growth.
Looking ahead, 2025 will be a critical year for the industry as market players monitor policy developments, economic trends, and changing consumer preferences, all of which will play a key role in shaping the trajectory of India’s residential real estate market.