Advertisement
India's eight key housing markets recorded a modest 1% rise in sales during the July-September quarter, indicating sustained demand but hinting that the residential property market could be approaching a peak. Sales for the year so far have slightly declined by 1% to 2,57,804 units. Factors such as lower mortgage rates, strong economic growth, tax benefits, and improved consumer confidence due to GST rationalisation have supported housing demand. Luxury and ultra-luxury segments are showing early signs of slowdown, prompting experts to encourage developers to focus more on affordable housing.
Sales in India's eight major housing markets increased by 1% during the July-September quarter, according to real estate consultant Knight Frank India. While this nominal growth shows the market is holding up, the report suggests residential property demand may be reaching its peak. Advertisement
Releasing its latest market analysis through a webinar, Knight Frank stated that 87,603 housing units were sold across these cities during the third quarter, reflecting continued strong demand since the post-COVID recovery phase. Factors such as falling mortgage rates, steady economic growth, and budgetary tax incentives have helped maintain this momentum. Analysts also noted that the full impact of GST rate rationalisation from September 22 on housing demand is yet to be fully reflected.
Shishir Baijal, CMD of Knight Frank India, observed that the residential market has sustained momentum over five consecutive years of an upcycle. He added that year-on-year growth is beginning to normalise, signaling that the market may be entering a prolonged plateau. Baijal also highlighted that interest rate cuts of up to 100 basis points, along with simplified direct taxes and GST measures, have strengthened consumer confidence among homebuyers.
Despite steady quarterly sales, the cumulative numbers for the first nine months of this year across Delhi-NCR, Mumbai Metropolitan Region, Pune, Chennai, Hyderabad, Bengaluru, Kolkata, and Ahmedabad showed a marginal 1% decline to 2,57,804 units compared to the same period last year.
Gulam Zia, Senior Executive Director at Knight Frank India, confirmed that there are no clear signs of a demand slowdown. However, he pointed out early "cracks" in the luxury and ultra-luxury housing segments. Zia advised developers to focus on affordable housing options, noting that growth potential in the premium segment is becoming limited.
Source PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
