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Housing sales across India's seven major cities declined 14 per cent over the past year to about 3.96 lakh units, impacted by high prices, weaker demand, and job cuts in the IT sector, according to Anarock. Despite lower volumes, the total sales value rose 6 per cent to over INR 6 lakh crore due to continued price growth. Average housing prices increased 8 per cent, though the pace of appreciation slowed to single digits. Chennai was the only city to record a rise in sales, while all other major markets saw declines.
India's primary housing market across seven major cities saw a notable slowdown over the past year, with home sales dropping by 14 per cent to around 3.96 lakh units. The decline was driven largely by elevated property prices, softer buyer sentiment, and reduced demand following job cuts in the information technology sector. Broader economic uncertainty and geopolitical tensions also weighed on purchasing decisions. Advertisement
Data released by real estate consultancy Anarock shows that while volumes fell, the total value of homes sold increased by 6 per cent to over INR 6 lakh crore, compared to INR 5.68 lakh crore in the previous year. This rise in value reflects sustained price appreciation even as transaction numbers weakened.
The average residential price across the top seven cities rose by 8 per cent, reaching about INR 9,260 per sq ft by the end of the recent quarter, up from INR 8,590 per sq ft a year earlier. Anarock pointed out that price growth has moderated, easing from double-digit increases seen in earlier years to single-digit growth during the year under review.
Sales declined in six of the seven cities tracked. The Mumbai Metropolitan Region recorded an 18 per cent fall in housing sales to 1,27,875 units. Pune saw one of the steepest drops, with volumes declining 20 per cent to 65,135 units. Bengaluru posted a relatively modest 5 per cent decline, with sales at 62,205 units.
Delhi-NCR witnessed an 8 per cent fall to 57,220 units, while Hyderabad saw a sharper contraction of 23 per cent, with sales reducing to 44,885 units. Kolkata also recorded weaker demand, with sales down 12 per cent to 16,125 units.
Chennai stood out as the only market to register growth, with housing sales rising 15 per cent to 22,180 units. The city's performance was supported by relatively stable pricing and steady end-user demand, particularly in mid-income segments.
Anarock attributed the overall downturn to a combination of hardening property prices, layoffs in the technology sector, tariff-related concerns, and global economic uncertainty. The consultancy also noted that affordability pressures have become more visible in high-ticket markets, affecting buyer sentiment.
Looking ahead, Anarock indicated that the housing sector's performance in the coming year will be closely linked to potential interest rate cuts by the Reserve Bank of India and the extent to which developers exercise restraint on further price increases.
Source PTI
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