Pune’s Real Estate Supply Drops by 41%, Sales Down 24% in Q4 2024: PropEquity Report

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Pune's Real Estate Supply Drops by 41%, Sales Down 24% in Q4 2024: PropEquity Report

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In the final quarter of 2024, the real estate landscape in India’s top nine markets showed significant changes, with both housing supply and sales declining. Specifically, the supply of housing units decreased by around 33 percent compared to the same period last year, dropping to 85,765 units from 1,27,936 units. However, this figure was 7 percent higher than the previous quarter, where supply stood at 80,284 units. On the sales front, there was a 21 percent drop, with total sales falling to 1,08,261 units in October-December 2024, down from 1,37,225 units the year before. Nonetheless, sales did see a slight recovery compared to the prior quarter, increasing by 5 percent from 1,03,213 units. This data highlights the evolving nature of the real estate market during this period.

The top nine real estate markets in India include Bengaluru, Hyderabad, Chennai, Kolkata, Pune, Thane, Navi Mumbai, Mumbai, and Delhi-National Capital Region (NCR). Notably, Delhi-NCR is the only region that defied the national trend, experiencing a significant increase in housing supply and sales. In Q4 of calendar year 2024, housing supply in Delhi-NCR surged by 59 percent, rising from 7,072 units to 11,223 units compared to the same period last year. Sales also saw a 25 percent increase, going from 10,354 units to 12,915 units.

On the other hand, the data indicates that Hyderabad faced the steepest decline in housing supply, dropping by 52 percent. Other markets that saw significant decreases in supply included Thane (48 percent), Pune (41 percent), Kolkata (37 percent), Navi Mumbai (30 percent), Mumbai (25 percent), Chennai (17 percent), and Bengaluru (11 percent).

Hyderabad also led the decline in sales, with a drop of 47 percent. Following Hyderabad, Kolkata saw a 33 percent decrease in sales, while Mumbai experienced a 27 percent decline. Pune’s sales fell by 24 percent, Thane by 16 percent, and Navi Mumbai and Bengaluru both by 13 percent. Chennai’s sales dipped by 9 percent. This data highlights the varying dynamics within the real estate market across different regions in India.

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The dip in housing supply and sales can largely be attributed to 2023 being an exceptional year for both metrics. According to Samir Jasuja, CEO and founder of PropEquity, the year-on-year decline is primarily due to the high base effect from 2023, which was a peak year for sales and launches. He pointed out that even with this drop, the supply-to-absorption ratio in 2024 remains consistent with 2023, indicating that the underlying fundamentals of the real estate sector are still robust.

Additionally, Jasuja noted that while the annual trends show a decline, quarterly figures have actually seen an increase, driven by demand during the festive season. Sunil Sisodiya, founder of Geetanjali Homestate, emphasized that the yearly decline reflects a more complex situation influenced by localized challenges and evolving consumer preferences, suggesting that while there may be a dip, the market dynamics are still active and responsive to specific conditions.

Hyderabad is experiencing a significant decline in both supply and sales due to stricter zoning regulations and a slowdown in demand driven by the IT sector. In contrast, Mumbai and Chennai are facing challenges as high property prices and rising interest rates have discouraged mid-range buyers, resulting in a broader market correction. However, Delhi-NCR is defying this trend by implementing targeted infrastructure improvements and affordable housing initiatives, attracting both developers and buyers, according to Sisodiya.

He emphasized that this regional variation underscores the need for strategies tailored to specific cities. The data suggests that areas with proactive urban planning and diverse demand sources remain strong, indicating possible routes for a wider recovery.

Garvit Tiwari, director, and co-founder of InfraMantra, a real estate consultancy in Gurugram, noted that signs of an economic slowdown have led to a decrease in enthusiasm among homebuyers and investors throughout the year.

“This slowdown may also be attributed to low activity from April to September due to general elections and the monsoon season. Consequently, home sales appear to have decreased from the peak in 2023, but the overall health of the real estate market remains strong,” he stated.

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