Ahmedabad’s Housing Sector Surges with 110% Rise in New Launches: PropTiger.com Report
This fall in absorption is on account of homebuyers deferring purchase plans during a quarter when the world’s largest democracy went to polls, the report adds.
Mumbai, 11th July, 2024: Housing sales in India’s eight prime residential markets fell 6% during the April-June period of 2024 (Q2CY2024), even as new supply tapered, a quarterly analysis by digital real estate brokerage firm PropTiger.com shows.
In its quarterly report titled ‘Real Insight Residential – April-June 2024’, the Gurugram-headquartered firm said a total of 113,768 units were sold in Q2 of Calendar Year (CY) 2024, against 1,20,642 in the previous quarter (Q1CY2024). The quarterly decline in sales was seen across cities, barring Bengaluru (30% increase) and Delhi-NCR (10% increase).
Applying a wait-and-watch strategy ahead of the poll results, homebuyers deferred plans to invest in real estate during the quarter, which saw the world’s largest democracy conducting national elections, the firm said in its report.
“Demand for homes moderated during the April-June period on account of the General Elections even though consumer sentiment continues to remain extremely positive about real estate investments on the back of strong fundamentals. Amid expectations of a pro-investment Union Budget after the formation of a new government at the Centre, we have reason to believe that sales numbers would strengthen in the coming quarters, especially during the festive months,” said Mr. Vikas Wadhawan, Group CFO, REA India, and Business Head, PropTiger.com.
“Awaiting policy changes in the upcoming Union Budget that would pave the way for turning India into the world’s third-largest economy by 2027-28, the developer community, too, exercised caution, as evidenced by a decline in new launches in half of the cities sampled in our analysis,” Mr. Wadhawan added.
Bengaluru defying trends:
Soaring property values in India’s IT capital, which nudged homebuyers to finalise purchase plans helped Bengaluru defy the overall trend, with leading developers unveiling plans to launch new projects in the city, the report said. Similarly, easy availability of ready-to-move-in homes was cited as a key reason for an uptick in Delhi-NCR sales numbers.
An annual comparison of sales numbers in the June quarter, however, showed a 42% increase over the corresponding quarter in 2023 wherein 80,245 homes were sold.
| Sales | |||
| Cities | Q1 2024 | Q2 2024 | QoQ Change |
| Ahmedabad | 12,915 | 9,500 | -26% |
| Bangalore | 10,381 | 13,495 | 30% |
| Chennai | 4,427 | 3,984 | -10% |
| Delhi NCR | 10,058 | 1,1065 | 10% |
| Hyderabad | 14,298 | 12,296 | -14% |
| Kolkata | 3,857 | 3,237 | -16% |
| Mumbai | 41,594 | 38,266 | -8% |
| Pune | 23,112 | 21,925 | -5% |
| Grand Total | 120,642 | 113,768 | -6% |
New supply down 1% QoQ; Hyderabad, Kolkata see sharpest fall
New supply fell marginally by 1% to 101,677 units during the April-June quarter — from 103,020 in the January-March period — the REA India group company said in its statement. The sharpest decline in supply was registered in Hyderabad (58%), followed by Kolkata (49%).
Moreover, only half the cities chosen in the analysis showed a fall in new launches while the remaining showed an increase. From 1,13,774 units in Q2 2023, new launches dipped 11% year-on-year in Q2 2024.
The primary reason for the sharp downward trend seen in new launches in Hyderabad and Kolkata has been a moderation in sales. On the other hand, new supply numbers for Ahmedabad doubled QoQ due to a spike in average property values.
| New launches | |||
| Cities | Q1 2024 | Q2 2024 | QoQ Change |
| Ahmedabad | 3,116 | 6,533 | 110% |
| Bangalore | 10,000 | 12,564 | 26% |
| Chennai | 4,723 | 4,633 | -2% |
| Delhi NCR | 6,872 | 8,053 | 17% |
| Hyderabad | 15,095 | 6,365 | -58% |
| Kolkata | 1,485 | 753 | -49% |
| Mumbai | 36,784 | 40,462 | 10% |
| Pune | 24,945 | 22,314 | -11% |
| Grand Total | 103,020 | 101,677 | -1% |
MMR the biggest contributor to both supply and sales
Claiming a whopping 40% share, MMR remained the biggest contributor to new supply in the June quarter, followed by Pune (22% share) and Bengaluru (12% share). Interestingly, the three cities were also the largest contributors to the quarterly sales in the same order, with MMR claiming a 34% share, followed by Pune’s 19% and Bengaluru’s 12% contribution.
The top localities in terms of sales were Thane West, Panvel, Dombivali, Vasai and Chembur, all located in MMR. The top localities in terms of launches were Thane West, Panvel, Vasai, Dombivali, Neral (all in MMR) and Sholinganallur (Chennai).
NOTE: Housing markets covered in the report are Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai & Thane) and Pune.
About REA India Pte. Ltd. REA India (previously known as Elara Technologies Pte. Ltd.) is a part of REA Group Ltd. of Australia (ASX: REA) (‘REA Group’) which is part of Newscorp, US. It is the country’s leading full stack real estate technology platform that owns Housing.com and PropTiger.com.
In December 2020, REA Group acquired a controlling stake in REA India. REA Group, headquartered in Melbourne, Australia, is a multinational digital advertising business specialising in property. It operates Australia’s leading residential and commercial property websites, realestate.com.au and realcommercial.com.au and owns leading portals in Hong Kong (squarefoot.com.hk) and China (myfun.com). REA Group also holds a significant minority shareholding in Move, Inc., operator of realtor.com in the US, and the PropertyGuru Group, operator of leading property sites in Malaysia, Singapore, Thailand, Vietnam and Indonesia.
REA India is the only player in India that offers a full range of services in the real estate space, assisting consumers through their entire home seeking journey all the way from initial search and discovery to financing to the final step of transaction closure. It offers advertising and listings products to real estate developers, agents & home owners, exclusive sales and marketing solutions to builders, data and content services, and personalised search, virtual viewing, site visits, negotiations, home loans and post- sales services to consumers for both buying and renting. Additionally, company also offers a suite of allied services, including features like Pay on credit, movers & packers, lending services, online rent agreements, and an array of DIY services, catering to both customers and landlords.
REA India has a national presence with 24 offices across India with its corporate office located in Gurugram, Haryana.
Housing.com Founded in 2012 and acquired by REA India (formerly known as Elara Technologies Pte. Ltd.) in 2017, Housing.com stands as India’s premier full-stack proptech platform catering to homeowners, home seekers, landlords, developers, and real estate brokers. Housing.com provides comprehensive listings for a wide range of properties, including new homes, resale homes, rentals, plots, commercial spaces, and co-living accommodations across India.
Company is backed by robust research and analytics, offering a spectrum of real estate services encompassing advertising, marketing, sales solutions for real estate developers, personalised search & insights, virtual viewing, AR&VR content, home loans, end-to-end transaction services, and post-transaction support for both buyers and renters. Additionally, company offers a suite of online services through Housing Edge brand, including features like Pay on credit, movers & packers, lending services, online rent agreements, and an array of DIY services, catering to both customers and landlords. With a presence in 24 cities (tier I & II markets), Housing.com’ mission is to simplify the home buying, selling, and renting journey for its valued customers. REA India is a group company of global proptech leader, REA Group of Australia that is part of NewsCorp US.
PropTiger.com PropTiger.com is among India’s leading digital real estate transaction and advisory services platform, offering a one-stop platform for buying residential real estate. Founded in 2011 with the goal to help people buy their dream homes, PropTiger.com leverages the power of information and the organisation’s deep-rooted understanding of the real estate sector to bring simplicity, transparency and trust in the home buying process. PropTiger.com helps home-buyers through the entire home-buying process through a mix of technology-enabled tools as well as on-ground support. The company offers researched information about various localities and properties and provides guidance on matters pertaining to legal paperwork and loan assistance to successfully fulfil a transaction.
