Housing sales fall by 14% during April-June quarter

Home sales in India’s 8 prime residential markets declined 14% annually in the April-June quarter as pricing concerns forced buyers to opt for a wait-and-watch mode, according to a report by real estate transaction and advisory platform PropTiger.com.

Sales fell across cities, barring Bengaluru, Chennai and Kolkata. The sharpest dip in sales during the quarter was seen in the MMR (32%) and Pune (27%). On a sequential basis, overall sales remained flat, with many markets showing growth. MMR (27%), Pune and Bengaluru (16% each) were the biggest contributors to the quarterly sales, together claiming a 59% share in overall numbers.

“The short-term dip in home sales and new launches is more of a recalibration than a sign of waning demand. Affordability pressures, particularly in the budget and mid-income segments, have led to some cautious buyer sentiment,” said Sridhar Srinivasan, Head of Sales at PropTiger.com.

Launches fall amid demand moderation

The report showed new supply falling both quarter-on-quarter and year-on-year as geopolitical factors adversely affected demand in Q2, a quarter during which the border conflict between India and neighbouring Pakistan escalated, resulting in each side launching a strike on the other.

A city-wise analysis shows varying trends, with MMR, Pune and Ahmedabad registering a fall in launches while new supply increased in other markets. In Kolkata, launches nearly tripled in the June quarter, primarily due a low base.

“Supported by sectoral performance and improving consumption trends, macroeconomic indicators point to India’s resilience in a turbulent global environment. The dip in both sales and launches have to do with the fact that housing affordability has worsened after a prolonged period of dramatic growth in average costs, severely affecting the affordable housing segment,” the company said in a statement.