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Mumbai home sales drop 31% between October-December 2024, New projects also decline

The impact of the elections was also evident in the number of new home launches in the fourth quarter of 2024.

Mumbai home sales drop 31% between October-December 2024, New projects also decline
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A report by PropTiger.com, a digital real estate transaction and advisory platform, has revealed that there was a 31 per cent decline in home sales and new projects in Mumbai, Navi Mumbai and Thane (MMR) during the October-December 2024 period.

The decline in sales is mainly due to the elections in the state of Maharashtra and rising property prices, according to the 'Real Insight Residential: Annual Roundup 2024' report by PropTiger.com. Since Maharashtra accounts for a significant share of India's residential market, the decline is also reflected in the overall country's figures. The data shows that house sales have declined across the country, barring the NCR, compared to the same period last year.

The impact of the elections was also evident in the number of new home launches in the fourth quarter of 2024. There was a 39% decline in this period compared to the previous year. This is because the process of project approvals was slowed down due to the elections in the state. The number of new home launches decreased in the last quarter of 2024 in 5 out of 8 cities included in the report.

Dhruv Agarwal, CEO, Housing.com and PropTiger.com said, “While the October-December festive season witnessed an increase in home sales as expected compared to the previous quarter, both sales and new launches have been down in most areas compared to the same period last year. Global economic uncertainty, elections in key states and rising property prices across the country have led both developers and buyers to adopt a wait-and-see approach.”

Agarwal added, “Delhi NCR was the only market to show growth in house sales compared to the previous year. Other regions, including the major markets of MMR, Pune and Bangalore, saw a significant decline in house sales. With interest rates unlikely to come down anytime soon and economic growth slowing, the market is expected to remain cautious in the coming quarters.”

New Home Sales: Among the eight largest cities, only Delhi NCR has registered a positive growth in new home sales. The region saw 9,808 new homes sold in the fourth quarter of this year (October-December 24), up from 6,528 in the same period last year. MMR continues to be the market leader with 33,617 homes sold. But last year, the figure was 48,553, a 31% year-on-year decline. It is followed by Pune with 18,240 homes sold, also a 31% year-on-year decline. In the south, Bangalore recorded 13,236 homes sold (a 23% year-on-year decline), Hyderabad recorded 13,179 homes sold (a 36% year-on-year decline), while Chennai recorded 4,073 homes sold (a 5% year-on-year decline).

New Home Launches: New home launches across the country's eight largest housing markets declined by 33% year-on-year in the fourth quarter of 2024 (October-December). Hyderabad saw the highest decline with only 9066 homes launched (66% decline), followed by Ahmedabad with 3515 homes (61% decline) and Kolkata with 3091 homes (41% decline). On the positive side, Delhi NCR saw a 133% year-on-year increase with 10048 homes launched. Chennai saw a 34% increase with 4005 homes and Bengaluru saw a 20% year-on-year increase with 15157 homes.

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