The real estate market in the Mumbai Metropolitan Region (MMR) and Pune experienced a mixed bag of fortunes in the third quarter of 2024. While new launches saw a modest increase, housing sales declined, reflecting a potential slowdown in demand. According to data analytics firm PropEquity, MMR housing sales fell by 10% year-on-year (YoY) to 39,163 units in Q3 2024. Pune witnessed an even sharper decline, with sales dropping 19% to 21,306 units.
The market dynamics varied across different regions within MMR. Navi Mumbai saw a 4% increase in sales, while Mumbai and Thane experienced declines of 17% and 10%, respectively. Despite the softening demand for apartments, the supply of new housing units continued to rise. MMR saw a 4.8% increase in new launches, reaching 33,528 units in Q3 2024. In Pune, however, new launches fell by 12% to 16,688 units. The regional breakdown of new launches was also uneven, with Mumbai and Thane witnessing increases of 18% and 11%, respectively, while Navi Mumbai and Pune experienced declines of 19% and 12%. PropEquity’s analysis also revealed that the overall real estate market in India is showing signs of resilience.
Despite the decline in sales and new launches in the top nine cities, the absorption rate remains higher than the supply, suggesting a continued demand for housing. Furthermore, the shift towards plots rather than apartments in Hyderabad and Navi Mumbai indicates a changing market dynamic. The decline in apartment supply and absorption in these cities is likely influenced by various factors, including affordability, lifestyle preferences, and investment strategies. While the third quarter of 2024 brought mixed results for the MMR and Pune real estate markets, the overall outlook for the sector remains positive. The continued demand for housing, coupled with the ongoing urbanization and economic growth, is expected to drive the market forward. However, factors such as interest rates, regulatory changes, and economic conditions will play a crucial role in shaping the future trajectory of the real estate industry.
