Halt in Housing Sales Amid Regulatory Delays Despite Value Growth

Housing sales are projected to decline by 4% across seven major Indian cities in 2024, attributed to fewer new launches and delays in project approvals amid elections. Despite the volume drop, the overall sales value increased by 16% due to a 21% rise in average housing prices.

Housing sales across seven major Indian cities are expected to decrease by 4% in 2024, a result of sluggish new project launches, according to leading housing brokerage firm, Anarock. The decline is attributed to delays in project approvals as the country prepares for both general and assembly elections.

Paradoxically, the overall sales value has risen by 16%, reaching Rs 5.68 lakh crore, underpinned by a 21% surge in average housing prices. Anarock Chairman Anuj Puri noted the mixed scenario, where dwindling sales volumes were counterbalanced by increased prices and larger unit sizes, resulting in elevated value terms.

Diverse trends were reported across cities; while Delhi-NCR saw a 6% decline in sales, Mumbai Metropolitan Region experienced a slight 1% increase. The housing market in Pune, Hyderabad, and Chennai also faced declines, with the most pronounced drop in Kolkata at 20% this year.

(With inputs from agencies.)