Q1 housing sales rise 5% annually in top 7 Indian cities, demand dips by 8%: report

India's housing sales in seven cities rose by 5% annually to 1.2 lakhs in Q1, but demand fell by 8% compared to the previous quarter due to high prices, according to a report by Anarock

Real estate consultant Anarock, a housing brokerage firm, released the housing market data for the April-June quarter.

Housing sales across seven major cities were estimated at 1,20,340 units in Q1, up 5% from 1,15,090 units in the year-ago period.

Sales are estimated to have fallen per cent from the previous quarter, which saw sales of 1,30,170 units. Anarock Chairman Anuj Puri said in a statement, "The quarterly decline seen in housing sales is essential because of the all-time high base considered in the previous quarter, when more than 1.30 lakh units were sold. "

"Most importantly, this drop is also due to the significant hike in property prices over the last year, which in turn has prompted many investors to take a breather," Puri said.

On an annual basis, Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Pune, and Hyderabad have seen rises in sales, while Chennai and Kolkata witnessed falls in demand.

Only Delhi-NCR has seen an increase in sales quarter over quarter, while the remaining six cities witnessed lower demand.

Commenting on the trend, Aakash Ohri, Joint MD and Chief Business Officer of DLF Homes, said there has been an unprecedented surge in demand for homes, which has reached an all-time high in the past two years, particularly in the aftermath of COVID, the report stated.

Ohri said, “This surge underscores a fundamental shift in people's perception of home ownership, where the value of having a place to call home has become more apparent than ever before.”

Shiwang Suraj, founder and director of brokerage firm Infra Mantra, was quoted by PTI as follows: "Recent data indicates a significant rise in housing sales in the NCR region during the April-June quarter. This surge can be attributed to the robust economic growth seen in key cities such as Gurgaon and Noida."

As these cities continue to attract investments and talent, he said the demand for residential properties has increased.

"The thriving job market, improved infrastructure, and enhanced quality of life in these urban hubs are key drivers behind this upward trend in housing sales," Suraj said.