The housing market in 2024 is expected to record its third-highest sales since 2013 with sales of 3.17 lakh units – a tad lower than 3.19 lakh units in 2013 and 3.43 lakh units in 2014, according to a report by Anarock. It said new launches are expected to cross 2.62 lakh units.
“Unprecedented growth in homeownership sentiment, faster technology adoption, and digital marketing, and innovative business practices had softened the overall impact of Covid-19,” the report added.
The momentum of 2013 & 2014 continued in 2015 with 3.08 lakh units, after which sales declined, bottoming out in 2017 at 2.11 lakh units. “A new bottom was created in 2020 with housing sales plunging to nearly 1.38 lakh units, while new launches dropped to 1.28 lakh units,” it said.
The COVID-19 pandemic induced strict lockdown in March 2020, which continued for the next 2 months, resulted in a complete collapse in housing sales and launches. The second half of 2020 witnessed some uptick with pent-up demand and homeownership sentiments which continued till the first quarter of 2021. However, the second wave in April 2021 dashed all hopes of a resounding recovery.
“2021 is expected to witness an increase of 35% in housing launches and 30% in sales over the previous year. However, against the peak year of 2019, supply and sales may be lower by 28% and 31%, respectively,” the report added.
A host of factors like government support, RBI intervention, vaccination coverage, low-interest rates, home ownership, improvement in the job market, etc contributed to this rise in the residential segment.
“2024 will very likely emerge as the new peak year that breaches 2019 levels, with supply projected to grow by 11% and sales by 22% over 2019.”
The report also did a comparison on housing sales and supply during two time periods, namely 2014-16 and 2017-19, and found that sales have exceeded supply in the latter. To put things in context, during 2014-16, total sales were 890500 units and supply was 1185000 units while in 2017-19, total sales were 720800 units while supply was 578700 units.
“We are unlikely to see the levels of supply and sales witnessed in 2014 anytime soon,” the report said.
This projection is for the top seven cities.
However, the data compiled by Anarock Property Consultants, in another report, revealed that leading listed players were now increasingly focusing on expansion into tier-II and -III towns.
A vast landscape of supply and sales exist in State Capitals and tier 2/3 cities where the reverse migration has not just enhanced demand but also altered the supply scenario and an aggressive expansion plan by reputed companies indicates huge untapped potential and opportunity in these cities. Omaxe is present in 27 cities across 8 states, prominent ones being Lucknow, Allahabad in UP; New Chandigarh, Ludhiana, Amritsar, Patiala in Punjab, Indore in Madhya Pradesh, and Delhi-NCR among others.
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