New Delhi: India’s real estate market witnessed a sharp slowdown in the October December quarter, with home sales across nine key cities falling 16% from the same period last year, ANAROCK’s latest report says. This development comes at a time when real estate developers were hopeful of a surge in demand, mostly on the back of cheaper loans due to lower GST rates.
According to the report, the Mumbai Metropolitan Region (MMR), saw an 18% fall in housing unit sales with around 1.28 lakh units sold. Pune followed with nearly 65,100 units sold, a sharper 20% drop since last year. Chennai bucked the trend, with a 15% increase in housing sales during the year.
“Traditionally, the October-December period records strong sales momentum and new launches driven by the festive season. However, the recent decline reflects a shift toward premiumisation in the market, as evidenced by value growth despite a contraction in volumes. This trend has been continuing from 2024,” Samir Jasuja, Founder and CEO, PropEquity remarked.
During this time, housing supply fell 10% year on year for the October-December period, with only Delhi (29%), Mumbai (15%) and Chennai (9%) showing growth.
The ANAROCK report also said that housing prices grew 8% from Rs. 8,590 to Rs.9,260 per sq ft from the end of last year to the end of this quarter overall.
One of the reasons was the premiumisation of the housing market, with almost 37% of the new supply priced below Rs.75 lakh and another 20% priced above Rs.2.5 crore. The biggest shift was in Delhi NCR, where almost 55% of the homes were priced above Rs.2.5 crore.
