Signs of recession are visible in the country’s real sector. The data from the top 8 cities of the country suggest this. These figures came at a time when RBI MPC was about to announce its policy rate.
According to the report, housing sales in the country’s top eight cities have declined by five percent in the July-September quarter due to a decrease in new offers and a rise in prices. Let us also tell you who has released these figures and why a recession is being predicted.
5 Percent Decline
On Tuesday, real estate brokerage platform PropTiger.com released a Real Insight report on India’s housing market. PropTiger is part of Australia’s REA Group. REA India owns Housing.com. According to the report, 96,544 units were sold in July-September, five percent less than the 1,01,221 units sold during the same period in 2023.
In the period under review, the number of new residential units launched in the eight major markets fell 25 percent to 91,863 units, compared to 1,23,080 units. PropTiger also highlighted in the report that the sharp increase in house prices affects affordability. Prices increased by about 20 per cent in the top eight cities.
Declined In All Except Delhi
According to the data, house sales have increased only in the Delhi-National Capital Region (NCR). There has been a decline in the other seven major cities. Sales in Delhi-NCR during July-September increased 29 per cent year-on-year to 10,098 units. It was 7,800 units in the same period last year.
On the other hand, sales in Ahmedabad fell by nine percent from 10,305 units to 9,352 units, in Bengaluru by 11 percent from 12,588 units to 11,160 units, in Chennai by eight percent from 3,874 units to 3,560 units, in Hyderabad by 19 percent from 14,191 units to 11,564 units and in Kolkata by 22 percent from 3,607 units to 2,796 units.
Residential property sales in the Mumbai Metropolitan Region declined by one percent from 30,299 units to 30,010 units during the period under review. Residential sales in Pune declined by three percent to 18,004 units from 18,557 units in the same period a year ago.
Signs Of Recession, But Why?
Vikas Wadhawan, Chief Financial Officer (CFO) of RERA India and Business Head of PropTiger.com, said the annual decline in sales and new offers reflects the market’s reaction to rising prices. He said we are seeing a healthy slowdown in market activity, which is beneficial for end users as it brings sustainable growth. In the last few quarters, prices have increased from three percent to 50 percent in some key areas of large markets, affecting immediate purchase decisions.
However, Wadhawan expects buyers to adjust to the new price realities gradually. Delhi-NCR includes Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad. Mumbai Metropolitan Region (MMR) includes Mumbai, Navi Mumbai and Thane.
