Housing sales across India's top nine cities dropped 23% in the January–March quarter over last year, as high prices and a slowing economy are making buyers cautious, according to a report by real estate data firm PropEquity.
Sales during the quarter were 1,05,791 units; only Bengaluru and the National Capital Region defied the downtrend with a 10% increase. Poor demand has led to a 34% drop in new project launches across the nine cities.
“The housing market is witnessing some correction after three years (2021–2023) of record supply,” said Samir Jasuja, founder of PropEquity. Besides high prices and a sluggish economy, many investors have turned wary because of concerns around the global trade war, he said.
Real estate shares have been among the worst performers this year so far on worries that a wobbly stock market could affect demand for luxury housing. A gauge of property developers is down nearly 25% from its peak value.
Hyderabad saw the steepest decline, with sales nearly halving during the quarter, while numbers for Mumbai and Pune fell by about a third.
The softness in the residential market contrasts with the upbeat mood in the commercial segment where firms leased a record 77.2 million square feet of office space across seven major Indian cities last year.
Last week, US President Donald Trump's real estate firm said it would build its first commercial tower in the western Indian city of Pune.
The PropEquity report said that the traditionally high supply markets - Hyderabad, Pune and Thane – continue to be in decline.
The share of the three cities to the total launches has come down from to 29% this quarter as compared to 38% in the same period last year, the report said.
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