India’s housing market continues to struggle. Sales across the top nine cities fell by 4 percent in the July to September quarter, settling at 100,370 units according to PropEquity. This marks the tenth consecutive quarter of decline, even as developers placed their hopes on festive demand and new launches.
Breakdown:
Context: New launches remained muted at 92,229 units in the third quarter, below the one lakh mark and 10 percent lower than the previous quarter. The nine cities tracked are Bengaluru, Chennai, Hyderabad, Mumbai, Navi Mumbai, Pune, Thane, Kolkata and Delhi NCR. The year on year decline was largely driven by the Maharashtra markets of Mumbai, Navi Mumbai, Thane and Pune, which recorded contractions ranging from 6 percent to 28 percent.
Angles: Some cities were able to post gains despite the overall softness. Bengaluru sales rose 21 percent year on year, Chennai grew by 16 percent and Kolkata surged by 25 percent. Hyderabad and Delhi NCR each registered a 4 percent year on year rise. On a quarterly comparison, sales across the nine cities slipped only 1 percent. Delhi NCR with a 24 percent fall and Thane with an 11 percent fall were the key laggards, while the remaining seven cities saw an improvement. According to PropEquity CEO Samir Jasuja, sales continue to be higher than new launches, which indicates underlying demand strength even as affordability remains under pressure.
What’s Next: Developers are relying on the festive season to lift both launches and sales. PropEquity projects that 2025 will broadly mirror 2024, with around four lakh unit launches and approximately 4.5 lakh sales, only slightly below last year’s figures. However, the mixed city performance in the latest quarter suggests that risks of unsold inventory remain, particularly in weaker markets.
Why this matters:
Real estate is a key driver of India’s economy and a source of large scale employment. A sustained decline in housing sales affects a wide set of allied industries including cement, steel, furniture and consumer durables, while also reducing state revenues from registration and stamp duty collections. For households, slower sales reflect affordability stress and can lower perceptions of wealth, reducing overall consumer spending.
The Big Picture:
Long term demand for housing in India is supported by demographics and Urbanization, yet affordability challenges and high financing costs are reshaping the market. Ten consecutive quarters of decline show that recovery cannot depend solely on festive offers. Both developers and policymakers may need to respond with new strategies, including a sharper focus on affordable and mid income housing and possible fiscal support, to restore market momentum.
