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Housing

India's Residential Real Estate Market Sees Temporary Slowdown in March and April

Strategic Insights

— 1 min read

The Indian residential real estate market showed a temporary slowdown in sales in March and April, with a 2% drop in value and a 15% drop in volume on a year-over-year (YoY) basis in April. Despite this slowdown, a report by Nuvama suggests that key organised developers like Prestige Estate and Brigade Enterprise are well-positioned for growth.

Key Takeaways:

  • The residential real estate market in India saw a drop in sales in both value and volume in March and April, with a 2% drop in value and a 15% drop in volume on a YoY basis in April.
  • The cities of Hyderabad and Pune saw the biggest decrease in sales by value in April, with decreases of 19% and 16% respectively.
  • Bangalore and Delhi NCR are the only two metro cities that posted an increase in sales, with growth of 14% and 7% in value respectively.
  • New launches in the 7 key metro cities in India decreased by 29% YoY in April, with only Hyderabad and Kolkata seeing an increase.
  • Inventory levels remained flat at 17 months in April, with Hyderabad having the highest inventory of 26 months and Pune and NCR having the lowest inventory of 11 to 12 months.
  • Housing prices increased in all 7 cities in April, with the highest growth seen in Kolkata at 20% YoY, followed by Mumbai and Bengaluru with 18% YoY growth each.
  • Organised developers like Prestige Estate and Brigade Enterprise are expected to see growth in sales due to factors such as lower interest rates, government incentives, and an increase in demand for larger homes after COVID.

Statistics:

  • 2% drop in value and 15% drop in volume on a YoY basis in April (Source: Nuvama report)
  • 19% decrease in sales value in Hyderabad in April (Source: Nuvama report)
  • 14% increase in sales value in Bangalore in April (Source: Nuvama report)
  • 29% decrease in new launches YoY in the 7 key metro cities in India in April (Source: Nuvama report)
  • 17 months inventory level in April (Source: Nuvama report)
  • 26 months inventory level in Hyderabad (Source: Nuvama report)
  • 20% YoY growth in housing prices in Kolkata in April (Source: Nuvama report)
  • 18% YoY growth in housing prices in Mumbai and Bengaluru in April (Source: Nuvama report)

Sources:

  • Nuvama report
  • Contify.com

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