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Southern market witnesses a remarkable 42 per cent drop in new launches, falling to 29,310 units in Q3-2024 as against 50,772 units in the same period last year, as per a report by PropEquity.
The total new launches across top-9 cities and top-30 tier-2 cities fell to 1,33,373 units in Q3-2024 as against 170596 units in the same period last year. (Representative Photo)
The property markets in southern India have underperformed in the July-September quarter of 2024, according to a report by NSE-listed real estate data analytics firm PropEquity. It said the southern market witnessed a remarkable 42 per cent drop in new launches, falling to 29,310 units in Q3-2024 as against 50,772 units in the same period last year.
Except Coimbatore, which saw a rise of 77 per cent in new launches, all other cities witnessed a fall with Mysore witnessing the highest fall at 90 per cent, followed by Visakhapatnam (87 per cent), Trivandrum (87 per cent), Mangalore (76 per cent), Vijayawada (69 per cent), Hyderabad (54 per cent), Chennai (23 per cent), Bengaluru and Kochi (19 per cent each), the report stated.
The total new launches across top 9 cities and top 30 tier 2 cities fell to 1,33,373 units in Q3-2024 as against 170596 units in the same period last year. The southern market’s contribution to total launches fell to 24% in Q3-2024 from 34% in the same period last year.
Bengaluru, Chennai, Hyderabad, Coimbatore, Kochi, Mangalore, Mysore, Trivandrum, Vijayawada, Visakhapatnam and Guntur have been considered for this analysis.
Developers called it an indication of market correction and expressed hope about an uptick in the festive season.
Angad Bedi, CMD, BCD Group, said, “The drop in launches and sales of housing units in Southern states in the July to September quarter is an indication of market correction ahead of the festive season which began in October. This is a stimulus response to rising prices and is a move triggered by market forces to maintain demand-supply balance and in order to avoid a high level of unsold inventory. It is also a sign of the maturity of the industry which is taking proactive steps to ensure a sustainable business environment.”
This will also help the industry expect a blockbuster sale in the ongoing festive season. Having said that, serious buyers are expected to openly invest in the market considering the median prices are going to further increase in the future on account of growing rentals and faster value appreciation of residential properties, making it a viable investment avenue.
The sales in Southern market fell by 31% to 33,773 units in Q3-2024 as against 48,978 units in the same period last year.
The total sales in top 9 cities and top 30 tier 2 cities fell 16% to 146264 units in Q3-2024 from 174833 units in the same period last year. The Southern market’s contribution to total sales fell to 23% in Q3-2024 from 28% in the same period last year
Bhavesh Kothari, Founder & CEO, Property First said: “The demand in the residential real estate segment is cyclical and is led by cultural events where for instance, all major developments are undertaken post the Shraadh period which marks the beginning of the festive season. This explains the drop in launches and sales in the July to September quarter as buyers stayed away from the market and developers refrained from launching new properties to maintain healthy levels of inventory without impacting the prices which are already inching higher.”
Having said that, the demand for residential real estate continues to be high with enquiries witnessing a constant rise as fence-sitters explore the best time to invest in the market. The festive season has already normalised the demand-supply scenario to a great extent and demand is back to its all-time high again, he added.
Vijay Harsh Jha, founder and CEO of property brokerage firm V S Realtors said: “The Southern market continues to be vibrant with sales exceeding launches across major markets. The rise in employment opportunities in the IT and manufacturing industries have generated a lot of demand for homes in the region which is reflected in the rise in prices ranging between 80-110% in the last five years.”
