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Housing sales in seven major cities rose 5 per cent annually to about 1.2 lakh units during the April-June period, while demand fell 8 per cent from the preceding quarter on surge in prices, according to Anarock.
Real estate consultant Anarock, which is one of the leading housing brokerage firm, on Thursday released the data of housing market for the current April-June quarter.
In April-June 2024, housing sales across seven major cities are estimated at 120,340 units, up 5 per cent from 115,090 units in the year-ago period.
However, sales are estimated to have fallen 8 per cent from the January-March quarter that saw sales of 1,30,170 units.
Anarock chairman Anuj Puri said, "The quarterly decline seen in housing sales is essential because of the all-time high base considered in the previous quarter when more than 1.30 lakh units were sold."
"Most importantly, this drop is also due to the significant hike in property prices over the last one year, which in turn has prompted many investors to take a breather," Puri explained.
On an annual basis, Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Hyderabad have seen growth in sales, while Chennai and Kolkata witnessed a dip in demand.
However, on a quarter-on-quarter basis, only Delhi-NCR has seen an increase in sales while the remaining six cities witnessed lower demand.
According to the data, housing sales in Delhi-NCR rose 1 per cent to 16,550 units in April-June from 16,450 units in the year-ago period.
Sales grew 6 per cent from 15,650 units in the preceding quarter.
In MMR, housing sales increased 9 per cent to 41,540 units in April-June from 38,085 units in the same period last year. Sales in MMR fell 3 per cent from 42,920 units in the preceding quarter.
Housing sales in Bengaluru stood at 16,360 units in April-June, up 9 per cent from 15,045 units in the year-ago period.
But sales fell 8 per cent from the preceding quarter that saw a demand of 17,790 units.
In Pune, housing sales rose 2 per cent to 21,145 units in April-June from 20,680 units in the year-ago period.
Sales have fallen 8 per cent this quarter from 22,990 units in the January-March period.
Housing sales in Hyderabad rose 11 per cent to 15,085 units in April-June from 13,565 units in the year-ago period.
Sales fell 23 per cent this quarter from 19,660 units in the preceding quarter.
In Chennai, housing sales fell 9 per cent to 5,020 units in April-June from 5,490 units in the year-ago period.
Demand was down 9 per cent this quarter from 5,510 units in the January-March period this year.
Housing sales in Kolkata declined 20 per cent to 4,640 units in April-June from 5,775 units in the year-ago period.
Sales in Kolkata are estimated to have declined by 18 per cent this quarter from 5,650 units in the preceding January-March period.
Commenting on the trend, Aakash Ohri, Joint MD and Chief Business Officer of DLF Homes, said, there has been an unprecedented surge in the demand for homes, which has reached an all-time high in the past two years, particularly in the aftermath of COVID.
Ohri said, "This surge underscores a fundamental shift in people's perception of homeownership, where the value of having a place to call home has become more apparent than ever before."
Residential real estate has not only served as a sanctuary for end-users but has also emerged as an attractive investment avenue, he noted.
"The substantial returns offered by residential properties, especially luxury homes, have fueled an increasing trend of purchasing homes for investment purposes," Ohri observed.
Bengaluru-based builder White Lotus Group Founder and CEO Pavan Kumar said, "The Bengaluru housing market shows promising growth, up 8 per cent in Q1 FY24 year-on-year.
"A 9 per cent dip from the previous quarter reflects election-related delays in project launches, a temporary setback caused by market sentiments."
Kumar expects the market to swiftly make up for the drop in Q1 and continue growing, driven by "robust job market trends, commercial expansions, higher executive incomes, and stable governance".
Shiwang Suraj, Founder & Director of brokerage firm InfraMantra, said, "Recent data indicates a significant rise in housing sales in the NCR region during the April-June quarter.
"This surge can be attributed to the robust economic growth seen in key cities such as Gurgaon and Noida."
As these cities continue to attract investments and talent, he said the demand for residential properties has increased.
"The thriving job market, improved infrastructure, and enhanced quality of life in these urban hubs are key drivers behind this upward trend in housing sales," Suraj said.