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Tag: Anuj Puri

Q3 2024 Housing Sales Drop 11% YoY in Top 7 Cities, Outpacing New Launches

Mumbai, 26 September 2024: After a 2-year bull run, residential real estate activity across the top cities stabilized in Q3 2024 – typically a slow quarter due to the monsoon and perceived inauspiciousness. Latest ANAROCK data reveals that housing sales across the top 7 cities declined by 11% annually, clocking in at approx. 1,07,060 units in Q3 2024 against approx. 1,20,290 units in Q3 2023. However, sales continued to outstrip new supply in Q3 2024, reflecting continued health in the market.

ANUJ PURI

Anuj Puri, Chairman – ANAROCK Group, says, “Among the top 7 cities, MMR recorded the highest sales of approx. 36,190 units, followed by Pune with approx. 19,050 units. Cumulatively, the two western cities accounted for 52% of the total sales across the top 7 cities in Q3 2024. All the top cities individually recorded a dip in housing sales. The top 7 cities also witnessed a drop in new housing supply, with approx. 93,750 units launched in Q3 2024 against 1,16,220 units in the corresponding period in 2023 – a 19% annual drop. Nevertheless, the fact that sales remained higher than launches indicates that the demand-supply equation remains robust.”

City-wise, MMR topped new supply with approx. 29,615 units launched in the quarter, followed by Bengaluru with approx. 15,915 units. Interestingly, while most cities saw new supply decline annually, NCR and Chennai saw whopping 53% and 51% increases, respectively.

In terms of budget segments, the >INR 1.5 Cr luxury housing segment witnessed the highest new supply of 33%, followed by the premium (INR 80 lakh – INR 1.5 Cr) segment with a 30% share. The mid segment (INR 40– 80 lakh) contributed a 23% share of the total new supply during the quarter, while the affordable segment’s share fell further to just 13% – the lowest in a quarter.”

Available housing inventory saw an 8% yearly decline across the top 7 cities amid strong sales – from over 6.10 lakh units as on Q3 2023-end to over 5.64 lakh units by Q3 2024-end. The inventory decline is largely attributable to sales exceeding new launches in the quarter.

Average residential prices in the top 7 cities collectively saw double-digit growth of 23% in Q3 2024 against Q3 2023. Hyderabad recorded the highest 32% annual growth, followed by Bengaluru and NCR with 29% increases each.

“Housing sales in the third quarter tapered down amid high prices and the monsoon season,” says Puri. “As always in this period, the ‘shraad’ period also suppressed demand to an extent as many Indians defer home buying in this period. Overall, the housing market is stabilizing after creating a new peak in Q1 2024.”

Developers have several projects lined up during the festive quarter (Oct.-Dec.) during which the market is expected to see an uptick in demand.

“That said, growth in the upcoming quarters may not be as steep as seen in the last 1-2 years,” says Puri. “Residential prices too seem to have peaked out and are now gradually stabilizing across cities. Developers are likely to roll out several offers and discounts during the upcoming festive quarter to attract buyers.”

New Supply Overview

The top 7 cities saw approx. 93,750 units launched in Q3 2024, against 1,16,220 units in Q3 2023 – a 19% annual decline. On a quarterly basis, there was a 20% drop. In Q2 2024, approx. 1,17,170 units were launched across the top 7 cities.

The key cities contributing to new supply in Q3 2024 were MMR (Mumbai Metropolitan Region), Bengaluru, NCR (National Capital Region), and Hyderabad, which together accounted for 78% of the total addition.

  • MMR saw approx. 29,615 units launched in Q3 2024 – an 18% yearly decrease and a 33% quarterly decline. Over 53% of the new supply during the quarter was added in the INR 40 lakh to INR 2.5 Cr segment
  • Bengaluru added approx. 15,915 units in Q3 2024 – a quarterly decline of 1% but 7% annual growth. Approx. 87% of the new supply was added in the mid and upper-mid-segment (INR 40 lakh – INR 1.5 Cr)
  • NCR saw a 53% yearly increase in new launches with approx. 14,130 units added in Q3 2024. On quarterly basis, this market a 17% decline compared to Q2 2024. A massive 64% of the new supply in the quarter was added in the ultra-luxury segment (>INR 2.5 Cr)
  • Hyderabad added approx. 13,890 units in Q3 2024 compared to 24,900 units in Q3 2023 – a 44% yearly decline and a 1% quarterly increase in new launches. A whopping 97% of the new supply was added in the premium, luxury, and ultra-luxury segments (priced upward of INR 80 lakh)
  • Pune added approx. 12,450 units in Q3 2024, witnessing a yearly decline of 49% and a 34% quarterly dip in new supply. Over 74% of the new supply was added in the mid and upper-mid-segment (INR 40 lakh – INR 1.5 Cr)
  • Chennai added approx. 4,620 units in Q3 2024, seeing an 11% quarterly decline but a 51% annual jump. Over 80% of the new supply was added in the mid and upper-mid-segment (INR 40 lakh – INR 1.5 Cr)
  • Kolkata added approx. 3,130 units in Q3 2024, a 5% annual decrease but a 46% rise over the previous quarter. Approx. 56% of the new supply was added in the sub-INR 80 lakh segment.

Housing Sales Overview

Approx. 1,07,060 units were sold in Q3 2024 – a yearly decline of 11% and a quarterly dip of 11%. NCR, MMR, Bengaluru and Pune together accounted for 80% of the sales in the quarter.

  • MMR recorded the highest sales among the top 7 cities in Q3 2024, with approx. 36,190 units sold – a quarterly decrease of 13% and a 6% yearly drop
  • Pune saw approx. 19,050 units sold in Q3 2024, a decrease of 10% over Q2 2024 and a 17% annual decline over Q3 2023
  • NCR saw approx. 15,570 units sold in Q3 2024, a marginal decline of 2% over last year and of 6% on a quarterly basis
  • Bengaluru sold approx. 15,025 units in Q3 2024, a quarterly and yearly decline of 8% each
  • Hyderabad recorded approx. 12,735 units sold in Q3 2024, decreasing by 16% over Q2 2024 and 22% over Q3 2023
  • Kolkata saw approx. 3,980 units sold in Q3 2024, declining by 14% over the previous quarter and by 25% over the corresponding quarter in 2023
  • Chennai saw approx. 4,510 units sold during the quarter- declining by 10% quarterly and by 9% annually

NCR – Affordable Housing Sales Share Dips to 24% in H1 2024, Luxury Up to 45%

 New Delhi, 31 July 2024: From epicenter of unscrupulous real estate activities to one of the country’s most vibrant realty markets, NCR has come a long way. The region has seen several notable trend reversals in the past five years. Among them – housing demand is now heavily tilted towards the luxury housing segment.

Latest ANAROCK data indicates that out of NCR’s total housing sales of approx. 32,200 units in H1 2024, an over 45% share was in the luxury segment, and 24% in the affordable segment. Back in 2019, sales of luxury homes were a mere 3% while the affordable sales share stood at 49%.

In terms of overall sales numbers:

  • Approx. 14,630 luxury units were sold in NCR in H1 2024, against approx. 1,580 units in entire 2019.
  • Approx. 7,730 units are sold in the affordable segment in H1 2024, against approx. 23,180 units in 2019.
NCR: Housing Sales in H1 2024 & % Share across Budget Segments
City Total Units sold < INR 40 Lakh INR 40 Lakh – INR 1.5 Cr > INR 1.5 Cr
NCR 32,200 24% 31% 45%
Gurgaon 17,570 27% 14% 59%
Noida + Gr. Noida 8,425 13% 45% 42%
Rest of NCR 6,205 31% 57% 12%

NCR: Housing Sales in 2019 & % Share across Budget Segments
City Total Units Sold < INR 40 Lakh INR 40 Lakh – INR 1.5 Cr > INR 1.5 Cr
NCR 46,920 49% 47% 3%
Gurgaon 13,250 43% 53% 4%
Noida + Gr. Noida 21,770 44% 52% 4%
Rest of NCR 11,900 66% 33% 1%

Gurugram

 Anuj Puri, Chairman – ANAROCK Group, says, “Among all NCR cities, Gurugram has been the most active real estate market in recent years. Millennium City saw approx. 17,570 units sold across different budget segments in H1 2024. Of these, a whopping 59% (approx.10,365 units) were luxury homes, followed by 27% (approx. 4,710 units) in the affordable segment.”

“Back in 2019, Gurugram saw approx. 13,245 units sold, of which 43% or approx. 5,740 units were affordable housing,” says Puri. “The sales share of luxury homes was just 4%, or approx. 470 units.”

 Noida & Greater Noida

 Noida and Greater Noida together saw approx. 8,425 units sold in H1 2024. Of this, 42% (approx. 3,550) units were luxury homes and just 13% (approx. 1,100) units were in the affordable segment. The highest sales share – 3,770 units or 45% – was in the mid and premium segments priced between INR 40 lakh and INR 1.5 Cr.

 In 2019, these two cities together saw the highest sales in NCR – approx. 21,770 units. Of this, 44% (approx. 9,565) units were sold in the affordable segment, and just 4% (approx. 990) units were in the luxury segment. The maximum sales of 11,215 units or 52% were in the mid and premium segments together.

 Other Cities

 Ghaziabad, Faridabad, Delhi and Bhiwadi together saw approx. 6,205 units sold in H1 2024, of which the luxury segment accounted for 715+ units, while affordable housing saw 1,920 units sold. The maximum sales of approx. 3,570 units were in the mid and premium segments.

 Back in 2019, these cities saw approx. 11,900 units sold, of which the highest share of approx. 7,875 units were in the affordable segment, followed by approx. 3,910 units in the mid and premium segments. Just 115 units sold were luxury homes.

New Supply Dynamics – City-wise

NCR: New Supply in H1 2024 & % Share across Budget Segments
City New Units Supply < INR 40 Lakh INR 40 Lakh – INR 1.5 Cr > INR 1.5 Cr
NCR 24,300 11% 12% 77%
Gurgaon 15,530 16% 1% 83%
Noida + Gr. Noida 7,320 1% 35% 64%
Rest of NCR 1,450 0% 26% 74%

NCR: New Supply in 2019 & % Share across Budget Segments
City New Units Supply < INR 40 Lakh INR 40 Lakh – INR 1.5 Cr > INR 1.5 Cr
NCR 35,280 47% 41% 12%
Gurgaon 19,350 53% 33% 14%
Noida + Gr. Noida 7,040 14% 70% 16%
Rest of NCR 8,890 62% 33% 5%

New supply in the region has followed demand, with developers adding more supply in the luxury segment and curtailing it in the affordable segment. Out of approx. 24,300 units launched in NCR in H1 2024 across budget segments, just 2,570 units or 11% were in the affordable segment – a massive 18,600 units, or 77%, were in the luxury segment.

Contrastingly, in 2019, out of approx. 35,280 units launched in the region, over 47% or approx. 16,680 units were in the affordable segment and a mere 12% (approx. 4,230 units) were in the luxury segment.

Unlocking Growth – Real Estate’s Wish-list for Union Budget 2024-25

Anuj Puri, Chairman – ANAROCK Group

 

Anuj puri

With Union Budget 2024-25 set to be tabled in July, the real estate sector pins renewed hope on the Modi 3.0 regime. Expectations are high for tax reliefs and other sentiment boosters. The future of the overall industry also depends on unfettered infrastructure deployment to support and improve urban living standards as well as to develop and promote newer areas.

Will the government finally decide to give in to the long-standing demand for industry status for the entire housing sector? Will it take ‘real’ measures to revive the affordable housing segment, which has been on a steady decline after the pandemic?

The Indian housing sector remained upbeat in 2024 till date, with housing sales and new launches creating new peaks in the top 7 cities. Sales reached an all-time high at about 4.93 lakh units in FY23-24, while 4.47 lakh units were launched.

However, this momentum must continue in the future too – and the current growth trajectory is skewed towards mid-range and premium housing. Considering the specific housing needs of India’s lower-income groups, this momentum cannot ride solely on higher-priced homes while affordable housing continues to languish.

As per ANAROCK Research, the sales share of affordable housing reduced significantly after COVID-19 – from over 26% in 2022 and over 38% in 2019 to approx. 20% in Q1 2024. Due to low demand, this segment’s share of the overall housing supply in the top 7 cities also fell to 18% in Q1 2024, from nearly 40% in 2019.

Many interest stimulants previously extended to buyers and developers of affordable housing have expired in the last two years. This important segment must be revived with high-impact measures like tax breaks – for developers, so that they will focus more on affordable housing, and for buyers to improve affordability.

Other measures to reignite affordable housing would be:

Credit-linked subsidy scheme under PMAY

This scheme for EWS/LIG, which expired in 2022, should be revived to incentivise first-time buyers of affordable homes across cities. This will onece again invigorate demand in this segment. Subject to criteria specified under government guidelines, CLSS was previously available for housing loans to EWS/LIG buyers in new constructions, and for the addition of rooms, kitchen, toilet etc. to existing dwellings. Also, under PMAY (Rural), one could avail of this subsidy for all ‘kaccha’ homes being converted into ‘pucca’ ones, provided they fulfil the eligibility criteria.

Re-introduce 100% Tax Holiday for affordable housing developers

To boost supply and incentivise developers to build more affordable housing, the government can re-introduce the ‘100% Tax Holiday’ benefit they previously enjoyed under section 80-IBA in the Finance Act, 2016. This section provided for major tax relief on the profits earned from developing and building affordable housing projects.

Tweak definition of affordable housing criteria to widen additional deductions benefits to more buyers

According to the Ministry of Housing and Urban Poverty Alleviation, affordable housing is defined based on property size, price, and buyers’ income. For instance, affordable housing is a house or flat with carpet area up to 90 sq. m. in non-metropolitan cities and towns, and 60 sq. m. in major cities and valued for both. The central bank’s definition, on the other hand, is based on the loans given by banks to people for building a house or buying apartments.

The government must seriously reconsider revising the pricing of homes within the affordable housing budget, taking into consideration city-specific market dynamics. As per the current definition, the size of units at 60 sq. m. carpet area is appropriate. However, prices of units  are not viable across most cities.

101+ Land Deals for Approx. 2,989 Acres Closed in FY-24 Across Indian Cities

Mumbai, 22 April 2024: The residential segment continues to drive the Indian real estate market, which also reflects in the land deals it is generating. Amid all-time high residential demand, several large and listed developers and other entities continued to snap up land. Other than residential, commercial, retail, industrial and logistics & warehousing are also driving prime land deals in key locations across India.

ANAROCK data indicates that various developers and entities sealed approx. 101 separate land deals in fiscal year 2023-24, cumulatively accounting for nearly 2,989 acres across the country. In contrast, FY-2022-23 saw 88 land deals for approx. 1,886 acres closed across various cities.

approx

“Interestingly, out of the total land deals in FY-24, over 83 deals for about 1,135 acres were closed in the top 7 cities alone”, says Anuj Puri, Chairman – ANAROCK Group. “The remaining 18 deals, accounting for over 1,853 acres, were sealed in various tier 2 and 3 cities like Ahmedabad, Ayodhya, Jaipur, Nagpur, Mysuru, Ludhiana, and Surat. Tier 2 & 3 cities have once again emerged as redoubtable growth engines, thanks to their rapidly improving infrastructure and growth opportunities.”

Among land deals in the top 7 cities, NCR topped out with 29 deals for 313+ acres, followed by MMR with 19 deals for approx. 157+ acres. Notably, in terms of total land area, Bengaluru saw 14 deals for 490+ acres transacted – the highest among all top 7 cities.

The number of deals in FY 2024 has risen significantly – from 88 deals for 1,886+ acres in FY23 to approx. 101 deals for 2,989+ acres in the current financial year. In terms of total area, around 58% more land has been purchased in the FY 2024 as compared to FY 23.

“At approx. 4.93 lakh units, residential sales across the top 7 cities have created a new peak in FY2024,” adds Puri. “In particular, large and listed developers have seen very high sales, and it makes sense for them to buy land across prominent urban micro-markets. Resultantly, the previous financial year saw some very prominent land deals taking place.”

Proposed Developments

  • Of the total land deals in FY-24, around 80 separate deals for approx. 2,252 acres are for proposed residential, plotted development township projects. In the residential category, deals were closed in Pune, Bengaluru, MMR, Hyderabad, NCR, Chennai, Mysuru, Ayodhya, and Jaipur.
  • Deals for proposed plotted development projects were sealed in cities like Sonipat, Nagpur, Surat and Ahmedabad, while township projects are slated in Ahmedabad, Bengaluru, Thane, Ludhiana and Ghaziabad.
  • Commercial and retail together saw 4 separate deals for over 42 acres closed. Of these, 3 were for commercial developments – one each in Gurugram, Noida and Mumbai – and one retail deal was closed in Thane.
  • At least 79 acres in 4 separate deals have been earmarked for mixed-use developments in cities including Pune, Mumbai and Ludhiana.
  • Approx. 164 acres in 5 separate deals were closed for industrial, IT park, and logistics park in Gujarat, Chennai, Navi Mumbai, Nagpur, and Cuttack.
Proposed Developments Area (acres) No. of Deals City
Commercial 31 3 Gurugram, Noida & Mumbai
Industrial 38 1 Gujarat
IT Park 11 2 Chennai & Navi Mumbai
Logistic Park 115 2 Nagpur & Cuttack
Manufacturing 411.75 3 Bengaluru, Gujarat & Andhra Pradesh
Mixed-Use 79 4 Pune, Mumbai & Ludhiana
Plotted Development 481.5 4 Sonipat, Nagpur, Surat & Ahmedabad
Residential 606.13 70 Pune, Bengaluru, MMR, Hyderabad, NCR, Chennai, Mysuru, Ayodhya, Jaipur,
Retail 11 1 Thane
Township Project 1164.33 6 Ahmedabad, Bengaluru, Thane, Ludhiana & Ghaziabad
Educational 8.61 1 Gurugram
Not yet Decided 31.52 4 Kolkata, Chennai, Karnala Village (Maharashtra)

The top developers who bought land parcels for various developments in FY24 include Godrej Properties, Eldeco Group, Adani Realty, Signature Global, Oberoi Realty, DLF India, Prestige Group, K Raheja Corp, and Brigade Group, among others.

Top Land Deals Across Cities
Deal in Quarter Buyer City Approx. Size (in Acres) Proposed Development
Q1-FY2024 ESR India Sanand (Gujarat) 38 Industrial
Q1-FY2024 Birla Estates Bengaluru 28.6 Residential
Q1-FY2024 Foxconn Bengaluru 300 Manufacturing
Q1-FY2024 K Raheja Corp Mumbai 4 Residential
Q2-FY2024 Prestige Group Mumbai 2.3 Residential
Q2-FY2024 Godrej Properties Gurgaon 7.91 Residential
Q2-FY2024 Arvind Smartspace Ahmedabad 204 Township Project
Q2-FY2024 UK’s Malhotra group Ludhiana 300 Township Project
Q3-FY2024 Eldeco Group Greater Noida 8.9 Residential
Q3-FY2024 Greenscape IT Park Navi Mumbai 4 IT Park
Q3-FY2024 ESR India Nagpur 58 Logistic Park
Q3-FY2024 Mahindra Lifespaces Pune 5.38 Residential
Q4-FY2024 DLF Homes Developers Gurgaon 29 Residential
Q4-FY2024 Lodha Ayodhya 51 Residential
Q4-FY2024 Brigade Group Chennai 16 Residential & Hospitality
Q4-FY2024 Signature Global Gurgaon 20.32 Residential