The residential real estate market in India’s top nine cities witnessed a slight decline in 2024, with sales dropping by 9% to 4,70,899 units. This decrease in demand was accompanied by a significant 15% reduction in new supply, which stood at 4,11,022 units. The slowdown was primarily attributed to two quarters of reduced activity caused by the General Elections and the monsoon season, according to a report by PropEquity, a prominent NSE-listed real estate data analytics firm.
The dip in sales reflects a cautious approach among buyers, influenced by market uncertainties during the election period and seasonal factors that typically affect real estate transactions. New project launches also saw a downward trend, as developers held back on initiating fresh supply in a subdued demand environment.
Despite these challenges, the real estate market continues to be a key sector of the economy, with stakeholders closely monitoring trends to adapt strategies. Factors such as policy changes, economic recovery, and evolving consumer preferences are expected to play a crucial role in shaping the sector's performance in the coming months.
While the decline in sales and supply is noteworthy, industry experts remain optimistic about a potential rebound as the market stabilizes post-elections and seasonal disruptions subside. The focus on urban infrastructure development and affordable housing initiatives could further stimulate demand in the near future.
This report highlights the dynamic nature of India’s real estate sector and the influence of external factors on its growth trajectory. It underscores the need for strategic planning and adaptability to navigate challenges while capitalizing on emerging opportunities in the residential property market.
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